Credit/Cash dilemma

[guy29]

Hi,

I want to pay my school tutition by credit card, but school doesn't accept credit cards. My options, I explored, are:

1. Get convenience checks from credit card company and pay using them. Problem is 3% fees charged on checks as convenience checks are treated as cash advancement.

2. Request balance transfer and get that money in my bank account. I have 0% APR offer for 6 months but I'm stuck with 3% balance transfer fee.

What else can I try to avoid paying by cash the tution?

[arthurb999]

What's wrong with paying cash if you have the money?

[guy29]

I'm using that money for investment. Tution is around $5000. That's the problem.

[arthurb999]

Pay cash for your school... you shouldn't really be investing when you have credit card debt... unless its a matched 401k...

[creditcardfree]

I'd also use your 'investment money' for tuition, rather than a credit card. As you have found out, those cards come with hefty fees.

[anonymous_saver]

Yes, pay case for tuition. Put a hold on some of your investments. It makes a lot more sense. Good luck.

[wincrasher]

You haven't given any information on this investment money. Is it earning a high rate you don't want to give up? Is there a penalty for early termination? Has it lost value and you are hoping to recover by hanging in there?

Short term debt is not bad if you are making more in the investment. If you are just hanging on, then it would be better to cash it in, take the loss and get it behind you - that is a lower risk strategy than taking on debt plus the investment risk.

If it's a solid investment, you could possibly use it as collateral for a loan. Unsecured loans from banks are a rarity these days. You may want to talk to a loan officer at your local bank. I'd try that first before jumping into bed with a credit card. Have a plan and explain it to the bank, they may listen.

[Justice44]

Re:Credit/Cash dilemma

Short term debt is not bad if you are making more in the investment. If you are just hanging on, then it would be better to cash it in, take the loss and get it behind you - that is a lower risk strategy than taking on debt plus the investment risk.

Hi Winchrasher,

What would be the investment risk in this situation?

[Justice44]

Credit/Cash dilemma

Pay cash for your school... you shouldn't really be investing when you have credit card debt... unless its a matched 401k...

I completely agree.

[lizzy_09]

Ever thought of applying for work study programs? Or become a student worker in the college/university you are in? They have a 9 units minimum in the field you want to pursue while you work part time for them.