Debt Transfer Coalinga CA

A financial expert explains why a young graduate should be careful about transferring his college loan debt to his credit card.

John Wenzel
Watermark Asset Management, Inc.
(925) 648-4730
2010 Crow Canyon Place
San Ramon, CA
Expertises
Estate & Generational Planning Issues, Middle Income Client Needs, Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Newlyweds & Novice Investors, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BS, CFP®

Scott Dauenhauer
Meridian Wealth Management
(949) 916-6238
25283 Cabot Road, Suite 207
Laguna Hills, CA
Expertises
Retirement Plan Investment Advice, Ongoing Investment Management, Advising Employee Benefit Plan Participants, Insurance Related Issues, including Annuities
Certifications
NAPFA Registered Financial Advisor, AIF, CFP®, MSFP

Kathleen Hartman
Greenleaf Financial Group
(323) 330-0579
5900 Wilshire Blvd. Suite 2600
Los Angeles, CA
Expertises
Ongoing Investment Management, Hourly Financial Planning Services, Retirement Planning & Distribution Rules, Middle Income Client Needs, Planning Issues for Unmarried & Same-Sex Couples, Socially Responsible Investments
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®

Daryoosh Khalilollahi
DABK, Inc. Financial Planning Services
(510) 703-9208
1563 Solano Ave., PMB 538
Berkeley, CA
Expertises
Hourly Financial Planning Services, Investment Advice without Ongoing Management, Middle Income Client Needs, Retirement Plan Investment Advice, Helping Clients Identify & Achieve Goals, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA, MSEE

Bryan Wisda
Summit Wealth Management, Inc.
(949) 753-9270
9210 Irvine Center Drive
Irvine, CA
Expertises
Advising Medical Professionals, Women's Financial Planning Issues, Professional Athletes or Entertainers, Planning Issues for Unmarried & Same-Sex Couples, Estate & Generational Planning Issues, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, CFP®

Darius Gagne
Quantum Wealth Management
(310) 568-1204
600 Corporate Pointe, Suite 1120
Culver City, CA
Expertises
High Net Worth Client Needs, Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Retirement Plan Investment Advice, Estate & Generational Planning Issues, Professional Athletes or Entertainers
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®, PhD

Mary Lacey Gibson, CFP
Mary Lacey Gibson, CFP
(831) 623-2126
383 Olympia
San Juan Bautista, CA
Expertises
Newlyweds & Novice Investors, Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Hourly Financial Planning Services, Retirement Planning & Distribution Rules, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

David Duttenhofer
Duttenhofer Advisory Group
(949) 494-6820
1100 S. Coast Highway Suite 210 A
Laguna Beach, CA
Expertises
Ongoing Investment Management, Retirement Plan Investment Advice, Helping Clients Identify & Achieve Goals, Tax Planning, Real Estate Investments, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

Jennifer Cray
Investor's Capital Management, LLC
(866) 966-9291
1100 Alma St., Suite 200
Menlo Park, CA
Expertises
Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Retirement Plan Investment Advice, Retirement Planning & Distribution Rules, Women's Financial Planning Issues, Socially Responsible Investments
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Jennifer Hartman
Greenleaf Financial Group
(323) 330-0579
5900 Wilshire Blvd. Suite 2600
Los Angeles, CA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Hourly Financial Planning Services, College/Education Planning, Planning Issues for Unmarried & Same-Sex Couples, Socially Responsible Investments
Certifications
NAPFA Registered Financial Advisor, CFP®, CFS, MFA

Debt Transfer

Provided by:

Dear YOUNG MONEY,

Of the many student loans I have, two of them are private TERI loans, currently at 8.25% with no cap. They total about $17,500. One of my credit cards is having a balance transfer promotion of 3.99% for life. It also will charge me $75 to do this transaction, but I figure it's a small price to pay for the savings in interest. I have an $18,600 limit on the card, and so if I transferred this balance I would just about max out the card. Of course, I would use another card for future purchases until this balance is paid off.

What do you think about this decision? Does interest accrue differently on credit cards, and in such a way that may work to my disadvantage here?

 

Thanks so much!

Brian

 

Dear Brian,

 

Thank you for reading Young Money and thank you for the email.

 

Initially this could look like a no-brainer but watch out! This could be a big financial mistake. I know the lower rate seems attractive but credit cards accrue interest on outstanding balances daily. I would guess, without seeing your loan paperwork, that your student loan is a simple interest loan. In fact, with your student loan you have options for deferment and payment of interest only if you are still in school. With a credit card you would have only one option, pay the monthly minimum payment every month or face a default penalty interest rate, and damaged credit. ...


Click here to read the rest of the article at YoungMoney.com.