Shortcut Navigation:

Question for the Money Doctors

Question submitted on Apr 5, 2011.

Question

I am looking to reduce my College Student loan. My current interest rate is 7%
Are there any other place I can transfer my student loans to. I was also thinking of sign up for 1 year interest free credit cards. Need some advise

Answer

The benefit of the student loan is you have a great deal of time ot pay it off, but the downside is the costs.  If you have equity in your home, I would look at doing a home equity loan as the rate will probably be lower and the interest deductible.  Shifiting the balances around credit cards with lower interest rates is fine, so long as you watch very closely the terms and make sure you move your balances out before the "teaser rate" term expires, otherwise you will end up in the mid teens in interest rate. 


For additional information visit http://www.360financialliteracy.org/