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.

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®

James Ludwick
MainStreet Financial Planning, Inc.
(805) 277-4782
600 Chapala St., Suite B
Santa Barbara, CA
Expertises
Cash Flow/Budgets/Credit Issues, Middle Income Client Needs, Real Estate Investments, Retirement Planning & Distribution Rules, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, CFP®

A.J. Frank
A.J. Frank, CFP
(619) 497-0244
3935 Harney Street, Suite 202
San Diego, CA
Expertises
Cash Flow/Budgets/Credit Issues, Middle Income Client Needs, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

James Corbeau
Maas Capital Advisors, LLC
(888) 354-6227
9565 Soquel Drive, Ste 202
Aptos, CA
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Planning Issues for Business Owners, Retirement Planning & Distribution Rules, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Gregory Welborn
First Financial Consulting
(626) 844-4630
380 South Lake Avenue, Suite 112
Pasadena, CA
Expertises
Middle Income Client Needs, Ongoing Investment Management, Retirement Planning & Distribution Rules, Planning Issues for Business Owners, Tax Planning, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, MBA

Ara Oghoorian
ACap Asset Management, Inc.
(818) 358-3823
15260 Ventura Blvd.
Sherman Oaks, CA
Expertises
Advising Medical Professionals, High Net Worth Client Needs, Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Newlyweds & Novice Investors, Professional Athletes or Entertainers
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®

J. Jeffrey Lambert
J. Jeffrey Lambert, CFP
(916) 685-7040
1024 Iron Point Road
Folsom, CA
Expertises
Retirement Planning & Distribution Rules, Planning Issues for Business Owners, Financial Issues Between Generations, Charitable Giving - Trusts & Foundations, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, CFP®

William Cuthbertson
Fiscalis Advisory, Inc.
(949) 429-5995
30320 Rancho Viejo Road, Suite 100
San Juan Capistrano, CA
Expertises
Tax Planning, Planning Issues for Business Owners, Estate & Generational Planning Issues, Ongoing Investment Management, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®, EA, MBA

Sara Ellefsen
Golden Gate Personal Financial Planning LLC
(415) 344-0549
703 Market Street, Suite 614
San Francisco, CA
Expertises
Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Planning Issues for Unmarried & Same-Sex Couples, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Robert Greenberg
Greenberg | Graham Advisors, LLC
(714) 437-0040
2600 Michelson Drive, Suite 1700
Irvine, CA
Expertises
Ongoing Investment Management, Charitable Giving - Trusts & Foundations, Planning Issues for Business Owners, Retirement Planning & Distribution Rules, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

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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