Student Loan Reimbursement to pay off Credit Cards?
Hi, I'm new here, and just looking for some financial advice on what to do. A little background, I'm 25 and work full time, making about $36,000 a year. I'm currently getting my masters degree also.
I have about $15,000 in student loans from my B.S degree, and I'll probably rack up another $15,000 for the masters. I currently have about $4900 (give or take a few hundred) in credit card debt that I would really like to get rid of.
The way my school works is, they approve you for an amount more than needed for tuition, and then basically deposit the excess in your checking account. I don't really have to buy books, so I don't need the extra money for that. I thought about saving the excess from the fall semester to put towards next year, so I wouldn't have to take out more loans, but I wanted to see if paying off CC debt was a more viable option. My new loans will have a 6.8% fixed interest rate in about two years (after I'm finished with the degree and the grace period). My current loan has a 2.8% interest rate.
I'm pretty strapped for cash each month, after rent, car payment, car insurance, cable, electric, cell phone... but I cut corners where I can. For instance, I don't have a landline, which saves about $50 a month. But anyway, I do what I can, sending extra money a month to the credit cards (2 of them), but it's a slow process.
Sorry for the ramble, but I'd appreciate any advice. Thanks a bunch!