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Personal Finances / Paying Back Student Loans


Subject:  Re: Step One... Date:  11/19/2005  11:09 PM
Author:  caromero1965 Number:  3997 of 4854

The idea is to simply borrow money from your credit cards, if you can get a low enough promotional rate to make it worthwhile, and use that to pay off student loans. If you can either get a rate that's good until it's paid off, or estimate how much you could pay off in a year (if, say, that's the duration of the promotional rate) and borrow that much, you can come out ahead. But it's a bit risky as a strategy if something should go wrong (like you miss a payment) and you lose that rate.

Of course, interest on credit card debt isn't tax deductible... (I used to think that was a bad thing, esp. when I had a lot of CC debt-- which I still do-- but people have now run themselves into so much CC debt that maybe it's for the best to have a disincentive for irresponsible financial behavior.)
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