Think Twice Before Using Credit Cards to Repay Student Loans

by | Oct 10, 2016 | Student Loan Debt

Some people might try to convince you that the best way to get student loan debts off your plate is to pay them using credit cards. Before you do, think twice. You might end up getting more debts than paying one.

Take the example of Sallie Mae. The formula of Sallie Mae is to pay off the loan, or a portion thereof, using a credit card. It in fact encourages students and their families to acquire new credit card debt as means of paying off the student loan debt. While this may help you repay your debt, it doesn’t make you debt-free at all. Paying a debt using another debt leads to a vicious cycle. A cycle of non-ending debts. Before you know it, your debts will pile on top of one another. You can read more about the disadvantages of using credit cards in repaying loans in the article below:

http://www.usnews.com/education/blogs/student-loan-ranger/2011/12/21/think-twice-before-using-credit-cards-to-repay-student-loans

There are other ways of repaying student loan debts. You don’t need to resort to acquiring new debts via credit card. If you don’t heed, you might find yourself tangled into more debts than solving your current problem.

The following two tabs change content below.
Avatar

Kevin Fallon McCarthy

Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.