I love using my credit card for gas (3% cash back) when I can, but there are certain situations where you simply can’t use a credit card to pay your bills. I would love to get 1% cash back on my rent, but of course the property management company I rent through ads on lots of fees if you pay via credit card, so I send in a check each month.
Now that Lauren and I are married, I’ve taken a look at our financial situation and wanted to take action on a couple of important matters.
The first was paying off some of her student loans. I’ve paid off most of mine, but we can’t say the same for her (yet).There are a lot of them, and while the large number is a little scary, I’m not expecting to pay them all off this year. That being said, I want to tackle the high interest rate loans as soon as possible. At 7.25%, I’d love to lock in that rate (I look at paying off debt the same as earning that interest rate) for the foreseeable future.
The only question was how to pay it off. I love doing things online because it’s super fast and convenient, but I’ve had trouble in the past with paying off student loans online because by default, the payments are applied to all loans (both principal and interest) instead of paying off just the principal of the loan I wanted. I wanted to save money on the student loans, I didn’t want to make payments on the loans with lower interest rates!
So we called in together to find out how we could pay just the expensive loan, and were surprised to hear that we could pay it off over the phone, using our credit card. Um, score! I was planning on paying off $7,000, and to know that I’d be getting 1% back means I got $70 for paying via my credit card (which never carries a balance from month-to-month).
Readers, Does your student loan company let you pay via your credit card? Does this encourage you to pay off your balance sooner?