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Should you use a credit card to pay off student loans?

Should you use a credit card to pay off student loans?
KETK
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POSTED: Thursday, July 18, 2013 - 6:58pm

UPDATED: Wednesday, August 21, 2013 - 1:13pm

"It's very hard to justify it," said Jay Oliver, financial advisor at Rose Point Capitol.

Using a credit card to lift the burden of student loan payments may seem like a good idea.

With low or no interest for the first couple years, reward points, and a debt shed in bankruptcy.

But you may want to think again.

"Credit card debt can be very dangerous," Oliver said. "Saddled with credit card debt can be very prohibitive in the long run to making other long term investments like buying a home."

And if you're using the credit card because you think you'll eventually discharge the debt when filing for bankruptcy, not only are you planning to fail, but you might want to prepare yourself for court.

"If you're doing it with intent of not repaying the loan so you can write it off in bankruptcy then that's fraud," Oliver said.

Jay Oliver is a financial advisor at Rose Point Capitol and says he would not recommend using a credit card to pay off this loan.

Instead he recommends they look at other alternatives.

"community colleges for at least the first two years of school," Oliver said. "Maybe working while they're going to school to pay that debt as they go along."
 

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I think, using credit cards in paying student loan will just worsen the situation. For those who have a bad credit score and are looking for means through which rebuilding credit is possible, the truth is that it will not be easy. Loans and standard credit cards won't be an option, but secured credit cards might. Despite high interest rates and collateral requirement, they can help you rebuild credit slowly. Source: https://www.personalmoneynetwork.com/personal-loans if you need some help.

The real fraud is funding Universities through student loans in career fields that have been eliminated by the government in secret. If that stumps you then remember what Ronald Reagan did to the oil and gas industry in the 1980's or what Obama is doing to the coal industry right now. Of what value is mine engineering in Amerika? How would a graduate pay back that student loan, flipping burgers?

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