Paying Debt with Debt is a Fast Road to Ruin

Paying debt with debt from another credit card is a very fast road to financial ruin. 

Debt with debt is like sand balls

It is always tempting but you are actually just putting off the inevitable of being forced to admit that you are suffering financial hardship. Until you admit that to yourself, you will just be adding one problem on top of another.

Admit when you are in financial hardship – it’s your cheapest choice.

When you use another credit resource like a credit card to make payments off another financial resource, it’s simply loading up more debt onto that other credit resource. When you do this, you have added debt onto debt by way of another credit card and it may have, or may not have, the same rate of interest attached to it. After all, we all know that each credit card has its own rate of interest attached to it.  

So if you can’t make payment on the credit card that has a 7% interest rate and if you were to add that months payment from another credit card onto a credit card that has a 12% interest rate attached to it, then you will have bought time before the next payment falls due but you will be paying an exceptionally high interest rate for having done so. You will have bought time at a very high rate of interest.

The cheapest and more honest choice is to ring the credit card provider and explain that you are currently suffering financial hardship and make arrangements with them about a payment plan. Then stick religiously to it. That way, you will not be receiving dreaded and often nasty phone calls about overdue payments and once you have proven that you are sticking to the repayment arrangements, they are less likely to mark your credit score down.

There is no shame in admitting financial hardship. Just don’t “cry Wolf” and claim it when it doesn’t really exist and you simply don’t want to make a payment! No-one likes the payments to credit card companies so the only way to avoid making any payments at all is quite simple – don’t use a credit card.

Paying debt with debt added elsewhere is a game of Russian roulette. You never know the future no matter how well you think you may have planned for it. Stuff happens in life that none of us has any control over so all you can do to avoid financial problems in the future once you have paid off, or paid down debt, into more manageable slices, is to contact your credit card provider and explain that you wish to cancel your credit card because you no longer need it, and then find the nearest pair of scissors and cut it up.