Paying off Credit Cards with Student Loans!

<p>Hello everyone, I want some advice, and please look at the situation realistically before simply saying "nope bad idea!"</p>

<p>I had to take on a few thousand dollars of credit card debt earlier on, mostly due to stupid choices ("Oh I want this $400 jacket, I do have a credit card for it!"). Now the reality of debt has hit me, and I hate it. I make the minimum monthly payment each month, but it's quite large, and it's making it hard for me to have any money left over. I've cut up every credit card and don't use them anymore, but I'm still mostly paying interest when I make a payment. It's horrible..</p>

<p>Anyway, I applied for a private student loan and my school certified an amount that (due to my cheap shared apartment) is actually more than I need for the year. I thought about calling and lowering the amount of the loan, but realized it's about what I need to pay off my credit cards. Should I take it and pay them off?</p>

<p>The benefits are: My credit cards have interest rates ranging from 14% (lowest) to 22% (highest). The average is like 17.5%. My private student loan has an interest rate of 6%. </p>

<p>So, I believe it's a good idea to take out extra student loans and pay off the credit cards - anyone else have advice? Please don't lecture me, I know I made mistakes....and also, I am committed to not getting in debt again, so don't worry about me running them back up. I know the reality now, I haven't used credit cards in a long time.</p>

<p>Use the excess student loan money to pay off your credit card, and then, call the credit card company and have them lower your limit to something reasonable, like $1000. Then, you have it for an emergency, but can’t get ridiculous again with it. This is a huge lesson! Remember, you WILL have the student loan to pay off later, so be wise with your money. Maybe will be the best thing you learn during college!</p>

<p>Keep in mind that credit card debt is dischargeable in bankruptcy and student loan debt is not.</p>

<p>I would do it. I also would try to take less loans in the future and stay out of trouble. Lesson learned is very important. I would also try to make sure my total debt was not crushing later.</p>

<p>I would definately 100% pay off the credit card debt with the excess student loan money. Lower interest rate on the loans as compared to the credit card means less money having to be spent in the long run because the accumulating credit card interest will end. Plus, your monthly payments with the credit card debt will stop and you won’t have to begin paying off your private loans until (hopefully, not certain what your private loan rules are) after you graduate.</p>