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At some point, there’s going to come a time when you run short on cash, it happens to us all. If you’re finding it difficult to come up with your minimal payment for a credit card, is it possible to use another credit card to pay it off?
Well, you could, you can use a credit card to pay off another credit card. However, there could be better ways to pay off that card. Let’s explore what options you do have.
It’s possible to use a credit card to pay off another, although you likely won’t be able to do it directly. When you go to make your payment online, you’ll likely see that the credit card issuer doesn’t allow you to enter a credit card to make the payment.
Despite that, there is a way around it. You can go to the ATM and get a cash advanced on your credit card to pay the other card.
Once you have the money in hand, you can go to your bank and deposit it in your checking account. With the money in your account, you can then pay the credit card as you usually do.
Now, if your credit card issuer sends convenience checks, you’ll be able to cash those and deposit them into your checking account.
Be mindful, both of these scenarios can cost you a fair amount of money. ATM fees can be high depending on where you go and convenience checks cost additional money.
Cash advance fees typically carry a 3-5 percent interest charge, but you do want to be mindful of these before you do anything.
What About A Balance Transfer?
If you’ve been thinking about using one credit card to pay off another, you’ve likely come across some information on a balance transfer.
If you have good credit, you’re going to have a lot of options for finding a great zero percent interest balance transfer credit card.
If you’re carrying a $10K balance and you’re paying 21 percent APR on interest, that interest charge is going to be a lot of money.
Hold the phone, there’s usually a 3-5 percent balance transfer fee involved.
The bottom line, if you’re thinking about a balance transfer, make sure you read the fine print.
You may find out it’s not worth the cost, just depends on your specific scenario.
How Are Your Finances?
If you’re struggling to make your minimum payments, you likely know why.
If you’re considering a balance transfer, just be mindful of your specific situation before you proceed.
Why are you having trouble making minimum payments?
- Are you overspending?
- Are you making less money than before?
- Did you have an unexpected expense?
- Do you have too much debt?
Is There Any Other Options?
Cash advances are expensive, loans are expensive too, especially for someone that is already struggling to make the minimum payments.
Sure, you can use that money to catch up on bills but then you’ll have to turn around and start paying on your loan.
Now, if someone is willing to loan you some money interest free, that’s another story.
After all, if you don’t make your credit card payments, it’s going to ruin your credit and you don’t want that.
You may also want to consider having a yard sale or selling some of your personal belongings.
How much are you spending?
If you’re not tracking how much you spend, you need to start doing so.
For example, if you’re spending $150 a month on coffee, you may want to cut that in half.