Posted on: 20th Jun, 2008 03:17 am
I'm a graduate student trying to raise my credit score. I'm yet to pay off my credit card debt. I've been paying more than the minimum and have never been late. Do you think it will be a wise thing to pay off credit card debt using the student loan funds? I'm not good at moving debt around but isn't it better to owe more on student loan than on the credit cards?
Hi Perry.
Welcome to the forum.
I agree with you that you should try to pay off the credit card debt ASAP but not with the student loan fund. You have taken the student loan for the study purpose. So try to use it there. If you cannot afford the credit card debts, then why have you taken so much of debt. If you cannot afford the credit card debts then you can try to consolidate your debts.
Welcome to the forum.
I agree with you that you should try to pay off the credit card debt ASAP but not with the student loan fund. You have taken the student loan for the study purpose. So try to use it there. If you cannot afford the credit card debts, then why have you taken so much of debt. If you cannot afford the credit card debts then you can try to consolidate your debts.
if larry interpreted you right, i agree with him. is it that you are contemplating taking money you borrowed on student loans as the funds with which you'll pay the credit cards? if so, don't do that.
by all means, pay the credit cards down as best you can instead of paying extra on the student loans, if that is what your question is, and if you only wish to improve your score. on that same note, the interest rates on credit cards will generally be better than on the student loans, so another reason to pay them first exists.
by all means, pay the credit cards down as best you can instead of paying extra on the student loans, if that is what your question is, and if you only wish to improve your score. on that same note, the interest rates on credit cards will generally be better than on the student loans, so another reason to pay them first exists.
Student loan debt is something that is impossible to erase and should be paid off as quickly as possible. You don't want to get into trouble with your student loans. At least if you fall behind on credit card payments, you can settle it at a lower rate or payoff the card in full at a lower negotiated balance. Student loans also are not included in bankruptcy claims, so they will never go away and if you don't pay them they will go into collections and wage garnishments can be applied to your income without a court hearing.
I want to add that most student loans are govt backed and if in default may make it impossible to finance a home through a goverment backed program
Brian
Brian
