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Using a credit card to pay debts

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BenutzernameMoneyland User Questions
Status Member
Registriert seit1/27/17
Beiträge2142

February 21, 2017, 11:30:40 AM

I have serious debts. Is there any way I can use a credit card to pay my debts. Does it make sense? What would it cost?

BenutzernameMoneyguru von moneyland.ch
OrtSchweiz
Status Expert
Registriert seit8/4/15
Beiträge4079

February 21, 2017, 2:22:23 PM

Although it is possible to use a credit card to get money for debt repayments, doing so is not a smart financial move.

A credit card may seem to be a convenient and discreet way to access money fast and getting a cash advance to avoid defaulting on a debt repayment can be tempting. However, Swiss credit cards generally have high interest rates so you may end up paying much more to carry credit card debt than you would pay to service your loan.

Refinancing your loan with another personal loan that has a lower interest rate is a better option, and can pay off in some cases. You can use the loan refinancing calculator to check whether or not you could save money by refinancing your loan.

Find out more in our guide to refinancing loans.

More on this topic:
Personal loan comparison
Refinacing: How to replace a loan
Loan refinancing calculator
Credit card comparison