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Is it a bad idea to pay college tuition with my credit card?

We all fall short of cash from time to time, but being low on money when it's time to pay our college tuition can affect our future. Many of us end up reaching for the credit card to pay our college bills when we don't have enough money, but this isn't the best idea.

Most Kentucky universities and colleges will accept credit card payments in lieu of a check or cash these days. However, the fees and other costs associated with credit card debt can really add up, so people who plan to hold their college costs as a balance on their credit cards may want to consider other financing options.

Convenience fees charged for the use of credit cards are particularly high. For example, on average, $262 worth of convenience fees are expected for every $10,000 worth of debt. The interest on credit card debt, charged by the credit card company, is also exceptionally high. For example, interest that needs to be paid on the debt will probably outweigh any potential benefits received. Student loans offer far better interest rates.

Although the rewards associated with credit card use can be particularly good, they are only useful if one pays the balance on the credit card in full and if the card issuer does not charge the user a convenience fee for the transaction. In any other circumstances, scholastic loans are a much more affordable way to finance college tuition costs.

For some Kentucky residents, it is already too late for this blog post to be of use. Anyone who is suffering under a mountain of credit card bills knows how serious the problem is and that it is difficult to get out from under this debt. However, various legal solutions are available -- including bankruptcy -- which could help individuals resolve debt problems once and for all.

Source: Lexington Herald Ledger, "Put it on my card...or not," Sarah Skidmore, Sep. 04, 2016

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