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.

W. David Armes
Dover Healthcare Planning LLC
(562) 343-5377
461-102 Kakkis Drive
Long Beach, CA
Expertises
Insurance Related Issues, including Annuities, Advising Employee Benefit Plan Participants, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Rob Lyman
Johnson Lyman Wealth Advisors
(650) 494-2733 Ext: 204
2600 El Camino Real, Suite 500
Palo Alto, CA
Expertises
Helping Clients Identify & Achieve Goals, Retirement Plan Investment Advice, Retirement Planning & Distribution Rules, Ongoing Investment Management, Planning Issues for Business Owners, Charitable Giving - Trusts & Foundations
Certifications
NAPFA Registered Financial Advisor, CFP®

Jon Theriault
RS Crum Inc.
(949) 428-9696
4 Upper Newport Plaza Drive, Suite 201
Newport Beach, CA
Expertises
High Net Worth Client Needs, Ongoing Investment Management, Advising Entrepreneurs, Advising Medical Professionals, Planning Issues for Business Owners, Real Estate Investments
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Paula Wiiken
Wiiken & Gorman LLC
(707) 769-0200
775 Baywood Drive, Suite 306
Petaluma, CA
Expertises
Socially Responsible Investments, Women's Financial Planning Issues, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, JD, MA

Cathy Curtis
Curtis Financial Planning
(510) 451-3528
3824 Grand Avenue, Suite 100
Oakland, CA
Expertises
Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Retirement Planning & Distribution Rules, Helping Clients Identify & Achieve Goals, Women's Financial Planning Issues, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

William Bengen
Bengen Financial Services, Inc.
(619) 240-7349
997 Wind Cave Place
Chula Vista, CA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MS

Christopher Jaccard
Financial Alternatives, Inc.
(858) 459-8289
7734 Herschel Avenue, Suite M
La Jolla, CA
Expertises
High Net Worth Client Needs, Helping Clients Identify & Achieve Goals, Alternative or Private Investments, Retirement Planning & Distribution Rules, Insurance Related Issues, including Annuities, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BS, CFA, CFP®

Bryan Wisda
Summit Wealth Management, Inc.
(310) 246-5770
9465 Wilshire Boulevard, Suite 450
Beverly Hills, 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®

Carl Carpenter
Beacon Financial Partners, LLC
(714) 969-8484
2130 Main Street, Suite 233
Huntington Beach, CA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Middle Income Client Needs, Helping Clients Identify & Achieve Goals, Planning Concerns for Corporate Executives
Certifications
NAPFA Registered Financial Advisor, BS, CFA, CFP®

Christopher Weed
Christopher H. Weed, CPA, Inc.
(209) 957-5025
1313 W. Robinhood Drive, Suite A2
Stockton, CA
Expertises
Ongoing Investment Management, Estate & Generational Planning Issues, Middle Income Client Needs, Charitable Giving - Trusts & Foundations, Retirement Planning & Distribution Rules, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS, MBA

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. ...


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