Paying off one credit card with another credit card

Paying off one credit card with another credit card

On Behalf of | Jan 18, 2022 | Uncategorized

Michigan residents who become overwhelmed by credit card debt sometimes struggle just to keep up with their minimum payments each month. If you’ve ever been in this situation, you might have asked whether it was possible to use one credit card to pay off another one.

You cannot use a credit card to pay off debt directly

If you’re trying to use one credit card to directly make payments on another credit card balance, you’ll find that doing so is not allowed. Credit card issuers restrict the way that you can make your payments in order to limit their risk. Using debt to pay down debt is usually not a wise move for the consumer either.

There are other options

Although you can’t directly pay off credit card debt with another credit card, there are ways to get around this restriction. If one credit card allows you to take a cash advance, for example, you could use the cash you borrowed to pay down other debt. However, the interest on your cash advance is likely to be higher than the interest on your other credit card debt and it could start accruing right away.

Another option for leveraging one credit card to pay off another credit card is to use a balance transfer. If you qualify, you may be able to transfer the full balance from one credit card to another. This could be a smart move if you are able to secure a new credit card that has a lower interest rate.

Debt consolidation and bankruptcy

Figuring out how to get through each month isn’t the ultimate solution to your debt problems. Eventually, you will have to find a way to pay down your debt significantly or you will continue to be plagued by accruing interest. You may be able to increase your income, lower your expenses and create a debt repayment plan. If not, debt consolidation or bankruptcy may be good options.