Credit cards are used by millions of people each year to support families, small businesses, and for leisure activities. Yet there seems to be a huge misconception that the credit card is a tool to help pay off debts. The big misconception is that only people who have a particular need for paying on their credit cards can receive this kind of convenience. Not so! More specifically, the big misconception is that only people who need to use credit cards can achieve the point: To pay off debts that will otherwise be impossible.
Suppose you have a child who cannot come up with an income to make a livelihood – regardless of the quality of his or her education. This is your child! If you have a child who has no financial means to support his or her income, should your daughter or son borrow money to pay for education as well? These are not really financial matters – but instead are related issues that should be considered. One should not get attached to the child simply because the child either is not yet financially capable or could not make it out of the child-friendly loans available to him or her.
When you have children, consider it an opportunity you can use. Many parents choose to provide their child with education in lieu of providing financial assistance. You should never side with the child simply because you will not be able to afford the education. You could, however, make the case that the parents who decided to allow their children to borrow more money will be able to make the case that their children are in good financial shape. If this is the case, you should not discount the prospect of your children using financial assistance.
One can and should do whatever it is “necessary” to pay off their credit card debts with a credit card that will provide them with a good education. Even someone who has nothing to save – or no income – should benefit from the free education. If you decide to go that route, you are bound to encounter some difficulty.
However, it wouldn’t be the same without free education. The goal of free education should be to “take back” what you “need” with the resources available to you. While it would be true to say that you should not be borrowing from your credit cards, it would also be true to say that you should not be making all the payments on a monthly basis – on “outrageously high” interest rates, for example. For most parents, it would be in their best interests to be able to sustain a steady source of income – which does not involve paying off their debt in installments.
Understand that the only time (the better part of a lifetime) you should be using your credit cards for any other purpose (such as paying the child off with a payday loan) is if you REALLY need it. If the child cannot attend school or has to take a job, the question you should be asking yourself is, “Why are there so many of these things?” The reason for the scarcity of these things is the lack of control you have over them. Why should you be worrying about your kid having to pay for things (and living in fear of it) in order to make ends meet?
A free educational option would be one that will help “take back” what you have borrowed for. It would be free of all the bells and whistles of the student loans, which actually are only a loan so far. You will not repay them (as you would borrow on them). You will not be able to pay for the things that you borrowed. And, even when you do repay those loans (which you may have been given by your parents), it may still not be too much of a burden to you and gives you a chance. If you are the type of person that lives by this philosophy (a philosophy that allows you to be responsible), you shouldn’t be concerned about the looming financial hardship your kid might be living through.
The way out from the “tantamount of debt” is to find out the cost of education. Before you do that, you should ask yourself what should the cost be? There are two main things you should know. The first one is really important. It is the principle of interest rates for student loans that should determine the “cost” of a secondary education. The other one is the interest rates that you have to pay every semester. The principle is the same for all four credit-card accounts. You do not need to pay the principal or tuition fees in order to be debt-free. While you could be making a big mistake if you put your hopes and dreams into paying your credit cards for college debt (and possibly more), paying off that debt should always be taken into consideration.
If you want to be totally responsible with your student loans, you should ask yourself the following questions: