If you have non credit card debts then you are certainly not alone. Debt today is an extremely big problem and with lenders offering ridiculous amounts of money to people who simply cannot afford it; it is easy to see why there is such a massive debt crisis. Many people simply have no way of paying a lot of their debts off and so that is when they turn to other methods of paying and paying with a credit card is one of them.
Why Paying Existing Debts with a Credit Card is Not the Answer
The problem with choosing to pay existing non credit card debts off on a credit card is that most of the time you will only be putting yourself in even more debt. Credit cards are dangerous things and with high balances you could potentially end up paying a lot more than you currently owe.
The problem is that credit cards have high interest rates and even those that are fairly reasonable are not designed to have thousands of dollars of debt kept on them. The interest on such high levels of debt can make your debt spiral out of control and go into hundreds of thousands of pounds worth of debt instead of just the few thousand that you are in now. Instead you would be much better off if you sought advice from a debt management company.
Can Paying off Existing Debts on Your Credit Card ever be OK?
The only time that it would ever truly be OK to consider putting existing debts onto a credit card, would be if you only had a couple of hundred pounds worth of debt. That way you could manage the repayments for the card a lot easier and even if you could not pay the balance back in full, you could still easily manage the low repayments.
It all really depends upon the amount of debt that you have. Only you can make a decision about how much you really can afford to pay back. So if you do have a little money spare each month and your debt isn’t overly high then there is no reason why you shouldn’t consider using your credit card to pay off your debts. The problem mainly comes when you have thousands of pounds worth of debt and you cannot pay it all off in one go.
There is of course a possible solution and that could be to pay off some of the debt. Often lenders are happy to receive any payment from you and so if you pay a chunk of it off with your card you could end up lowering your debt and still managing to pay it off on your credit card. Again it depends entirely upon what you can afford to repay and what the interest rate is on your card as to whether this is a good option for you, but it may be worth considering.
Overall paying off your existing non credit card debts with a credit card is not usually the best way to tackle your debt problem. However there are certain circumstances where it might be OK to consider it.