cancel
Showing results for 
Search instead for 
Did you mean: 

"good" vs. "bad" debt...

Highlighted
Regular Contributor

Re: "good" vs. "bad" debt...

If these are department of education backed loans, read your promissory note. You are prohibited from using your disbursement money for anything other than school related debts. If these are private loans, then most promissory notes aren't as restrictive.

This was the case at least since last year when I signed mine. The likelihood of you getting caught is low, but I thought I'd throw that out there.

Anyway, it all depends on your interest rates. It obviously makes sense to pay off high interest CCs with lower interest loans if you have no other source of income (aren't staffords right around 7% or so?).