Spiritually speaking.Would it be a good idea to take out a student loan to pay my credit cards?
March 12th, 2010 | by admin |Would it be a good idea to take out a student loan to pay my credit cards?
I owe almost $8,000 in credit cards. I am slowly paying them off. I was thinking of taking out a $10,000 loan to pay off my credit cars and get some work done for my car. Good idea or no?
11 Responses to “Spiritually speaking.Would it be a good idea to take out a student loan to pay my credit cards?”
By 1-900-Idiot-Savant on Mar 12, 2010 | Reply
Terrible idea.
By John on Mar 14, 2010 | Reply
I would say no, but perhaps you should pray for guidance and answers.
By JR on Mar 18, 2010 | Reply
NOOOOO it will only dig you a deeper grave! Just keep paying them off, even if it is slow it still will be better in the long run!
By The Professor on Mar 20, 2010 | Reply
Your gonna borrow more money to pay for borrowed money, I wouldn’t.
By highperactive on Mar 22, 2010 | Reply
NO. First negotiate the balance down to about $2000, then get a loan for $3000. Pay off the credit card and use the remaining $1000 to get financial and debtors counseling.
By bigA on Mar 25, 2010 | Reply
It really depends on the interest rates and repayment schedule.
That being said, where I live, it’s impossible to get a student loan without showing proof that you’re attending school. Even then, they don’t write you a cheque, they send it to the school. Just something to consider as a possibility.
By johnny.zondo on Mar 27, 2010 | Reply
actually yes, i took out a loan at 8% interest to pay off my credit cards at 24%…saved me some money.
it was the reccomendation of my schools financial counselor…and he was right!
By e r i n on Mar 28, 2010 | Reply
depends on the interest rate…
if you take the loan out, pay off the credit card gives you better credit but having a student loan out gives you not so good credit. but if you ever had money problems you can put the loan into a deferment or forbearance.
By liberty in action on Mar 31, 2010 | Reply
It would be better to go to a credit counselor who can help you consolidate all the debt on the cards, possibly get the interest rates lower to make it easier to pay off. Then don’t get into debt for a while, not even to get your car done, though you can tell the credit counselor about the need to fix up the car and see if that can be included.
In this economy, uncertainty, not a good idea to get deeper into debt. And by the way, there is nothing Spiritually Speaking about the question… so far it appears you have not reached heaven which is the only place you could apply a spiritually speaking concept or question.
By baseballfan56 on Apr 2, 2010 | Reply
Borrowing money to repay money borrowed is a terrible idea. Never charge more than you can repay the next month. In other words do not live beyond your means. Credit cards are a terrible way to pay for anything. With interest rates and other charges, just save up to purchase the things you want.
By Michael K on Apr 5, 2010 | Reply
According to the Bible, it is not the wisest of things to borrow:
Proverbs 22:7 The rich rules over the poor, and the borrower is the slave of the lender.
But, the main sin is when you default on the loan:
Psalm 37:21 The wicked borrows but does not pay back, but the righteous is generous and gives.
I believe the bottom line is to not put yourself into a financial position where you are not able to remain a good steward of your money. The money should never be your master. But, our economy is not set up for the middle class and below.
My advice, is to pay off your credit cards the best you can without the loan. Concentrate on paying more than the minimum. Cut back when you can. Before you know it, you will be able to take care of the debt. The only way that I would do it is if you get a low fixed rate for the life of the loan (with no pre-payment penalty).