Tip 6. Credit card loan - Paying Down Credit Card Debt

Use credit cards for a cheap loan. But with caution.


Credit card companies will often offer 0% APR for anywhere from 3 to 18 months on credit card convenience checks that you could deposit into your bank account. The usual fee for this transaction is 3% of the amount used (Discover Card just started charging 4%). If you are in need of a loan, this is a cheap and convenient option. Some cards even offer 0% APR with no fee (!), so essentially you are getting money for free! Sweet!

I used these checks a few times and it worked great for me. A word of caution: it's easy to fall into the trap of cheap money. You get a loan, spend money and then end up not being able to repay it. Bad things will start happening then. So use credit card loan only when confident that loan will be repaid.
 
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