Multiple credit cards for one debt?

Scenario:
A person owes $30,000 in school debt to a single entity. The person also has THREE credit cards. Each month, the person pays $500 using credit card 1 towards the debt and $50 (minimum fee) for the other credit cards, bringing the monthly debt to $600. On top of that, each month the person replenishes the first card by paying back $500 to keep using credit card 1 each month without maxing out.

Is it possible to instead spread the $500 a month debt across the three cards to cancel out having to pay the other card’s monthly minimums on top of the school debt to reduce the person’s monthly debt from $600 to just $500?

One thought on “Multiple credit cards for one debt?

  1. RonJohn

    A person owes $30,000 in school debt to a single entity.
    Each month, the person pays $500 using credit card 1 towards the debt

    Unless you’re really disciplined (and the loan company allows it, and they don’t charge you a “convenience fee”), paying off a lower interest loan with higher interest credit makes anti-sense.

    Is it possible to instead spread the $500 a month debt across the three cards to cancel out having to pay the other card’s monthly minimums on top of the school debt to reduce the person’s monthly debt from $600 to just $500?

    Of course it’s possible. But math is still math, and paying $500 instead of $600 means that you’ll be accumulating an extra $100 of debt each month.

    to keep using credit card 1 each month

    You’re paying off those other monthly charges, right?

    without maxing out.

    That’s always a bad sign. The person in your hypothetical situation is in serious financial shape.

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