Paying debt with debt???

I know, I know........horrible. But this may be the only way I can get through school. Hubby makes enough to pay for house bills, but I need to pay existing debt payments. Can I use credit card cheques and/or student loans to pay other debt payments? Doesnt' seem like a great option, but I am not really incurring additional debt......only accruing the same somewhere else (well, that and the interest). This would only be for semester one of school, while I "adjust" and then I plan to get a part time job.

Also wanted to ask.........hubby and I have really good credit. I was going to take out an alternative loan thru WF but I wondered whether I should just charge (write cheques from one credit acct to another) on existing cards to pay other debt. Wow! This is really confusing! Well, basically, I think I may have a lower rate on my CC's than thru an alternative loan. Makes sense? If I do, what is the advantage of an alternative loan other than you don't have to pay it while in school?? I do have Fed Fin Aid and some savings to get through about five months, but I am just thinking if I do need more, how will I access it if I do not take out this alternative loan...??

just exploring my options.....thanks!

[Guitar_Heroine]

Can I use credit card cheques and/or student loans to pay other debt payments?

I've had to do this too. Usually you can use the credit card checks, but not to make payments on a credit card through the same lender or something like that. Student loans you can take out to the school's estimated cost of attendance, but that's usually a little higher than my costs actually are so I take out the full amount and have to live off the "extra" - making payments on credit cards, etc.

Check out the interest rates on the alternative loans, they usually base them on your credit, so you may end up getting a lower interest rate there. And if you opt to pay the interest only while you're in school it might work out better?

Figure out your budget ahead of time though, so you're not stuck trying to get another loan at the last minute because there's usually a charge to rush it too.

[MIA-RN1, RN]

I know, I know........horrible. But this may be the only way I can get through school. Hubby makes enough to pay for house bills, but I need to pay existing debt payments. Can I use credit card cheques and/or student loans to pay other debt payments? Doesnt' seem like a great option, but I am not really incurring additional debt......only accruing the same somewhere else (well, that and the interest). This would only be for semester one of school, while I "adjust" and then I plan to get a part time job.

Also wanted to ask.........hubby and I have really good credit. I was going to take out an alternative loan thru WF but I wondered whether I should just charge (write cheques from one credit acct to another) on existing cards to pay other debt. Wow! This is really confusing! Well, basically, I think I may have a lower rate on my CC's than thru an alternative loan. Makes sense? If I do, what is the advantage of an alternative loan other than you don't have to pay it while in school?? I do have Fed Fin Aid and some savings to get through about five months, but I am just thinking if I do need more, how will I access it if I do not take out this alternative loan...??

just exploring my options.....thanks!

I don't know if this will help but what we did was take the highest interest credit cards and combine them all to a low interest credit card. That took care of a ton of problems.Then we had one HUGE card left and just took out a loan against the equity in the house. We paid off that huge card that was 21% and now its on a 4.75% loan. Plus we paid off the car that way too. We can pay interest-only payments on that and we are, until I graduate and can afford to make bigger payments on the loan. People said not to take a loan against the house but there was nothing else to do and we were sinking fast. Now we are frugal but breathing again.

I got the low-interest credit card to pay my schooling by the way. It was a low enough rate(5%)to be competitive w/ student loans and thats where I put my 21, 22% credit card balances. Then I cancelled all the other cards.

[FocusRN]

I know, I know........horrible. But this may be the only way I can get through school. Hubby makes enough to pay for house bills, but I need to pay existing debt payments. Can I use credit card cheques and/or student loans to pay other debt payments? Doesnt' seem like a great option, but I am not really incurring additional debt......only accruing the same somewhere else (well, that and the interest). This would only be for semester one of school, while I "adjust" and then I plan to get a part time job.

Also wanted to ask.........hubby and I have really good credit. I was going to take out an alternative loan thru WF but I wondered whether I should just charge (write cheques from one credit acct to another) on existing cards to pay other debt. Wow! This is really confusing! Well, basically, I think I may have a lower rate on my CC's than thru an alternative loan. Makes sense? If I do, what is the advantage of an alternative loan other than you don't have to pay it while in school?? I do have Fed Fin Aid and some savings to get through about five months, but I am just thinking if I do need more, how will I access it if I do not take out this alternative loan...??

just exploring my options.....thanks!

Well do you own a house? If so you can refinance your mortagage. I a part time loan originator, and my company, offers a 4 option loan, where you can get an initial mortgage or refinance (rates are about 5% right now), and with the mortgage you can include other debts like, the car payment and credit cards, ect. And you will come out paying less monthly, and it gets you equity.

If you don't own a home, you could always get a consolidation loan, that will pay off all of you credit cards, and or school loans, and just make one payment a month would be less.

Paying for debt with debt is okay, people do it all of the time, that is exactly what a consolidation loan is.

Good Luck

[Curious1alwys, BSN, RN]

Thank you all. I am not going to take out the loan now, atleast not yet. I am going to see how it goes with what I have saved and the Fed Fin Aid. I hate to take out too much and then see it all go. Better safe than sorry. I have good enough credit that if there is an emergency I will be able to access money somehow.

:)

[sheri_u2]

I know, I know........horrible. But this may be the only way I can get through school. Hubby makes enough to pay for house bills, but I need to pay existing debt payments. Can I use credit card cheques and/or student loans to pay other debt payments? Doesnt' seem like a great option, but I am not really incurring additional debt......only accruing the same somewhere else (well, that and the interest). This would only be for semester one of school, while I "adjust" and then I plan to get a part time job.

Also wanted to ask.........hubby and I have really good credit. I was going to take out an alternative loan thru WF but I wondered whether I should just charge (write cheques from one credit acct to another) on existing cards to pay other debt. Wow! This is really confusing! Well, basically, I think I may have a lower rate on my CC's than thru an alternative loan. Makes sense? If I do, what is the advantage of an alternative loan other than you don't have to pay it while in school?? I do have Fed Fin Aid and some savings to get through about five months, but I am just thinking if I do need more, how will I access it if I do not take out this alternative loan...??

just exploring my options.....thanks!

I paid debt w/ debt for a little under a year. The minimum payments get big fast! Soon, my minimums alone were $400 a month. Then you find yourself continuing the cycle cause your minimums are so high but you want to make your payments to keep your credit in good standing.

My advice..........proceed with caution. I'm declaring bankruptcy this month to erase these credit cards (gotta do it before the laws change), and will finish school on loans anyway. Yikes!

[FuturenurseCA&O]

Just wanted to plug scholarships. I applied for 5 small community based scholarships and received 4 so far...more than enough to pay for my second year's tuition. Depending on how much of a shortfall you are experiencing this might work for you. I have some $$ in the bank, but just stated that I wanted to keep this money in the bank, and based my financial need on current living expenses and tuition, which made for about a $3000 to $5000 shortfall.

If you decide to get a loan I would still apply and see if you can get funds to pay off this loan before you graduate, making the case for wanting to start your career with no additional debt. (I indicated that I had no debt and did not want to incur any to go to school--two interviewers complimented me on my decision to limit my debt burden, and were willing to help me out financially to maintain my "debt-freeness".)

To give you an idea about time frame, I took a day during spring break in March to fill out the paperwork, write out my expenses, and write a one page essay; and had received notification of awards by Apr-May. I found all the applications in the Financial Aid office at my school.

I found community based foundations had smaller awards $250-$2500, but they love to support nursing students--a great way to support education and help the community with a dire need for nurses!

Good Luck!!

~D