Question by lfguard31: Should I transfer my college debt to 0% credit cards? My wife has about $ 28000 in school loans. Should I transfer this to credit cards, two in her name and two in mine, with 0% interest and keep flipping credit cards every year to maintain the 0%? Best answer for Should I transfer my college debt to 0% credit cards?:
Answer by Ben
In theory yes. In practice this can be hard as you may not be able to find a card with 0% rate when your previous card's grace period is over, leaving you with a 20+% rate. Also 28,000 is a lot of money which you would have to spread over at least a few cards as most cards wont allow you to do a 28,000 balance transfer.
Answer by The Answerer
Dont be fooled by the 0%. There are some terms and conditions to maintain the 0% such as paying timely minimum amounts and other things. Look at the contract in detail.
Answer by MJ
NO, this will ruin your credit rating and trap you into high, and escalating interest rates. If it is too good to be true it is. Don't get suckered by the credit card companies.
Answer by gjkishere
Problem with that is you'll soon stop getting that 0%. Then you'll remember that school rate loan with much regret. Plus, interest of up to $ 2500 on it is tax deductable even if you're not itemizing deductions.
Answer by rattyboo
NOOOOOOOOO!! Don't do that! Credit card debt shows up on your TRW as BAD credit, student loan as GOOD credit. Student loan corporations are MUCH more forgiving, with chances to defer for different reasons. If you miss those credit card payments, they will CRUSH your credit in no time flat. I have much more on a loan than you do- $ 140,000. Stay with the student loan people- and consolidate if you have not already.
Answer by alaisjones
NO! I think you can re-negoiate the interest rate. I heard that a few days ago on the radio. Contact Dave Ramsey. He is an attorney and gives free advice. dave ramsey.com
Answer by katb
NO! Student loan debt is non-collateral and looks differently on loans. I graduated with $ 37,000 in school loans and it did not affect getting a house or car loan but if I had that on credit cards I never would have been able to. Plus there are certain jobs that pay off part of you school debt.
Answer by emma s
It's up to you, but I wouldn't. After the 0% time line is over, they will raise your rate higher than the repayment rate of a student loan lender. A student loan will never exceed the rate of 10%. Right now it's the lowest in history. Lock in on a rate. You qualify for many deferments that a credit card won't offer you. Check it out with your financial institution. Some loan companies will give you a break if they can automatically debit your bank account and they may forgive your last two payments for paying on time. Check into these things. Is sh e done with college yet? If she just got done you get one year before you have to start repaying. Depending on if it's a subsidzed or unsubsidized loan the government may be paying the interest on your loan. You will only pay back the amount borrowed without interest. If you transfer it to a credit card this won't be the case.
Answer by Jess2424
Definitely Not. Not only is college debt never bad debt, they do work with you if you ever get into financial trouble. And financially, you can 'write-off' the interest you pay on the school loan(under certain household income limits), which you are not able to do with the credit cards. Also, there are laws with school debt's interest rates. There is ceilings on those usually and they can't go higher than a specific amount. After the grace period is up, your 0% credit card will turn into a very high interest rate. Just keep moving along and if the payments get to high, call the financial aid office and work out a cheaper monthly plan. Remember-options with the school debt.
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How can credit card companies offer zero APR credit cards and still make money? Well, now that interest rates have gone up they dont so much anymore. But zero APR cards are can still be found if you look, and the Internet is probably the best source. So whats the catch? There are several:
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- Most zero APR credit cards offer zero APR for a limited time, normally no more than a year
Carefully read the fine print to find out exactly how much interest youll be payi...
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How can credit card companies offer zero APR credit cards and still make money? Well, now that interest rates have gone up they dont so much anymore. But zero APR cards are can still be found if you look, and the Internet is probably the best source. So whats the catch? There are several:
*sdfj
- Most zero APR credit cards offer zero APR for a limited time, normally no more than a year
Carefully read the fine print to find out exactly how much interest youll be paying later. Some people try to transfer their entire credit card balance to a new zero APR card every year in order to extend their limited time offer indefinitely, but credit card companies are getting wise to this maneuver. Nevertheless, getting a zero APR credit card can be a smart move as long if you read the contract and follow the rules.
- There is usually a an annual fee.
$ 20 is no problem, but beware triple-digit fees just to get zero APR for 12 months.
- Zero APR card issuers make money from suckers.
So dont be one. Late fees are high, so pay on time. How much of an interest rate is zero APR plus a late fee of $ 25? You can do the math yourself. The card issuer might also jack up the rate for late payers (they call it a default interest rate). And a default interest rate may apply not only to existing balances but future charges as well.
Zero APR credit cards can be great value if there is a reasonable interest rate after the limited offer period ends and as if you pay all your card bills as they come due. If you do that, then your low interest rate will in effect be paid for by the suckers who snatch up these cards and then dont pay on time.
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