Archives for July 2013

Paying Off Student Loans with Credit Cards – Bad Idea

 

Here’s a link to an interesting article from creditcards.com discussing possible consequences of paying off student loans with credit cards.  I’ve never met anybody who tried it, or at least admitted trying it.  The trouble with replacing old debt with new debt is that any debt you run up right before filing a bankruptcy is very likely to be considered fraud.  The creditor gets to object and can prevent the discharge of that particular debt.
Also watch out for paying tax debt with credit cards.  The 2005 law says that if you transfer a tax debt to a credit card, it remains non-dischargeable.

http://www.creditcards.com/credit-card-news/paying-off-student-loans-credit-cards-bad-idea-1282.php

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