I have a large credit card debt and a new line of credit. Should I use the line of credit to pay the card?

Question

I have a large credit card debt and a new line of credit. Should I use the line of credit to pay the card?

Answer 1

This is how people continue to get themselves deeper into debt.  I would only say yes if the interest rate is way lower than the first credit card and the second card doesn't charge any fees for transferring the balance.

Answer 2

It depends on three things:

1) Are there any fees associated with using your line of credit?

2) Is this the last time you're going to borrow any money?

3) Are you going to cut up the credit cards and never use them again?

Answer 3

How is the line of credit secured? If it's against your house then NO you do not turn unsecured credit card debit into secured real estate debt. Can you get a lower rate credit card and transfer the balance? That's what I did, and I am debt free now. Of course, I also cut back on my expenses and worked at not spending so much money.

Answer 4

Nope, you'll just be digging yourself deeper into debt. Leave the 'new' line of credit alone, for emergency purposes only, and try to pay down the other large credit debt. You may want to research some local debt management offices, and they'll teach you how to manage your monetary funds and debt. Good Luck.

Answer 5

Only if the interest rate is a lot lower and there's no transfer fees

Answer 6

Paying one credit card with another just means you're moving the debt load from one card to another, and accruing more interest along the way. This is one of the reasons credit card debt is completely out of control. Pay the credit card debt as you would any other bill - with a check from your checking account.

Answer 7

If you have multiple cards with debt then your best bet is to put a small percentage of each on the new card....why?

If you have one card that is totally filled with debt your credit score is worse then if you have five cards that are 3/4 full.