Should you use a credit card to pay off student loans?
POSTED: Thursday, July 18, 2013 - 5:58pm
UPDATED: Wednesday, August 21, 2013 - 12:13pm
(KETK) - Tyler Tx — "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."