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I took Step 1 of my new "get tough on debt" plan today. Called Citibank first. I didn't know I could transfer directly to Sallie Mae, so I had them send me a personal check. I'll deposit in my checking account and then send Sallie an electronic payment. I maxed this card out.

Then I called AT&T Universal and found out I could transfer directly, so I maxed that card out. I also reduced my auto-pay to the minimum balance (Citibank is already at that; they don't allow over-minimum autopays).


Scary! It's funny how, even knowing I just did a rational thing can make me anxious!

Next steps:

2. Complete the Citibank funds transfer.
3. Set up Quicken to remind me to make my new online payment
4. Tweak the estimate on the graph of my plan
5. Sit back, turn my attention to my first and second jobs for the next 18-24 months and watch the line on the graph fall every month when I make the new payment.

I can't believe it's gonna be over so MUCH sooner than I thought!


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No. of Recommendations: 3
Good luck, Zeppocat...

A caution: Citibank once converted a card I had (a Mellon Visa, after they acquired Mellon) to another card, and in the process somehow "lost" the records of the "until it's paid" promotional rate I had with Mellon... I never did get them to straighten that out (though I eventually got another "until it's paid" promotional rate). So if the cards go through any weird changes, make sure you keep copies of all of your statements plus the initial offer letter for the "Until it's paid" rate. This way you can document what they promised you if they try to pull a fast one.
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Please, can someone detail what this is about..
I know someone with a large educational debt and would like to know more..

I can't sort out the details from this post..

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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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Sorry Meg, I don't actually log in to this board very often, I somehow missed your email, and still it's no excuse for not replying to you.

Details about transferring relatively high-interest student loans onto low-interest credit cards can be found throughout this board. Perhaps you've discovered that by now, I don't know. But on both this board and on the Credit Card board you can find lots. Go to the Search and type in "snowball debt" and you'll find everything you need to know (and really well organized, too!).

Sorry again for the tardy response.

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