Author Topic: Another Student loan and credit card question.  (Read 1227 times)

face-punched

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Another Student loan and credit card question.
« on: April 06, 2014, 11:55:23 AM »
Hello all,

I just grabbed a new credit card to take advantage of the 0% balance transfer and intro APR for 15 months to crush that debt emergency, and it got me wondering if I could do the same in chunks for my student loans. How would I calculate how much money it would save me to do something like that? Has anyone here done something similar? My student loans are ~24k at 6.25%. say I could afford to pay 500/mo on the loan with the minimum at 200 on the loan. I'm not sure if my idea is silly, common, or effective in any way... Thanks in advance for the help.

Edit: I just noticed the intro period typo and corrected it.
« Last Edit: April 06, 2014, 04:56:38 PM by face-punched »

Gin1984

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Re: Another Student loan and credit card question.
« Reply #1 on: April 06, 2014, 04:39:58 PM »
It is pretty common but when take into account the 3% transfer free any loan 12 months or less is not worth it.

JoeK

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Re: Another Student loan and credit card question.
« Reply #2 on: April 07, 2014, 07:31:05 AM »
It is definitely worth it in many cases.

I just used a 0% balance transfer offer for 18 months with a 2% fee and used it to pay down $25,000 toward my wife's student loan. Her loan is at 5.75%. I will be saving a fairly significant sum of money with the 0% balance transfer, even after paying the 2% fee. My plan is to pay down the $25k over 18 months and then do it again with another $25k until the whole balance is paid off.