Is It Possible To Pay Off Student Loans With A Credit Card
Interest Rates (Photo credit: 401(K) 2013)
The cost of attending college is getting to be so expensive almost every one who attends will have at least one student loan. Most people will have more than one. Depending on what type of degree you have gone to school for it is possible that the amount of student loan debt you have acquired has reached the amount of at least six figures. That is not the average amount but it is possible especially if you have been attending medical school or law school. Once graduation has come and gone it is now time to decide the best ways to pay off the student debt that has been accumulated. One of the easiest ways is to pay off the loans through a low interest credit card.
Develop A Plan
Before graduation it is important for you to have a plan on how to pay off these debts. No one wants to start his or her life on his or her own in a large amount of debt. Many people will decide that keeping their student loans and paying on them every month as planned is the option for them. Others will decide to do a debt consolidation or other types of loans to pay them off. However if you take the credit card plan there are something things that you should be look for.
Interest Rates
All credit cards come with an interest rate. This is something that should be looked at carefully. When you are researching for credit cards to pay off your student loans you will find that it will probably take several cards to have enough credit to pay off the debt in full. The main question that should be asked is what the interest rate is. All of the interest rates should be lower than the interest rates of the student loans. If the rate is not lower it will defeat the purpose of paying off the student loans to save money.
When doing the research for the credit cards the best place to start is the Internet. This will give you the option of comparing the monthly interest rate as well as if there are any annual fees to be paid on the cards. If the rates are high and there are fees to be assessed it is possible that you will be hurting your financial situation more than you will be helping it.
There are many different ways and ideas to help pay off your student loan debt. There are even loans with no credit check that are offered when it comes to debt consolidation. One of the most common and talked about ways is by the use of low interest credit cards. You should be careful if this is the way that is decided to pay off the loans. If the interest rates that are used are higher than what the student loans are it is possible that this option will cost you more money in the long run. Therefore it will defeat the main reason why you want to pay off the student loans. A consumer should be wary when deciding what steps to take to pay off their loans.
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Category: Credit Cards
