Author Topic: paying down student loan with 0% credit card?  (Read 1117 times)

FuckRx

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paying down student loan with 0% credit card?
« on: July 22, 2014, 09:17:07 PM »

SL is at 97k now at only 2.75% but still that's $220/mo of interest payments. I can get a 0% cash out of my CC with a 20k limit and I think they charge like a 2-3% one-time fee for that. I would have a little over a year to pay that back. right now i make about 2k in payments to my student loans and I would have more than enough to pay the CC down in that time. should i do it?

Goldielocks

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Re: paying down student loan with 0% credit card?
« Reply #1 on: July 22, 2014, 09:44:58 PM »
Can you pay it off in full before the 0% ends?

2% is charged on full transfer rate, not your declining balance so your APR may actually be the same or more as SL.
 Eg you will pay 2%*$20000 = $400 on an avereage of $10,000 borrowed over the year if you pay it off.  This is a 4% rate.  

Even minimum payments may be as much as $600 per month with some cards, averaging $400/$16500, or just under 2.5% interest.

Your SL payments will not end so you will add $600 to $1800+ to your monthly payment for at best 0.25% on $20k, or $50 saved.

Not worth it.  Pay down SL by that the extra $month instead.  Wait for 1% or lower balance transfer.

FuckRx

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Re: paying down student loan with 0% credit card?
« Reply #2 on: July 22, 2014, 09:48:09 PM »
ahh got ya. ok, thanks for that.