Using Credit Cards to Pay Off a Loan

Paying Off a Loan with Credit Cards
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

Scott,
I have a home eq. loan for 10 years at 8.50% for $26,000.00. Could I pay this down with credit cards using $500.00 a month payments?
--J.G.

Answer
J.G.,

I think a better strategy is going to be to get another loan to pay this off. After all, 8.5% ARR is a fairly good rate so you may have some trouble beating this rate with credit cards over a ten year period. It can be done as long as you have enough credit to continually get good, true, low rate offers.

With interest rates dropping try shopping for a better loan on my web site at:
http://www.debtsmart.com/loan

Scott

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