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.

Gerald Gasber
Gasber Financial Advisors, Inc.
(916) 985-2594
81 Blue Ravine Road, Suite 250
Folsom, CA
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Estate & Generational Planning Issues, Insurance Related Issues, including Annuities, Retirement Planning & Distribution Rules, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®, CFS, CIMA, CIMC

William Duff
Duff Financial Advisory Services
(626) 301-9266
106 W. Lime Avenue, Suite 200B
Monrovia, CA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Tax Planning, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, MBA

Barbara Steinmetz
Steinmetz Financial Planning
(650) 401-3800
1840 Gateway Drive, Suite 200
San Mateo, CA
Expertises
Helping Clients Identify & Achieve Goals, Tax Planning, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, EA, MS

Stephen Doster
Doster Financial Planning
(619) 688-1192
7676 Hazard Center Dr, Suite 500
San Diego, CA
Expertises
Hourly Financial Planning Services, Middle Income Client Needs, Planning Issues for Unmarried & Same-Sex Couples, Investment Advice without Ongoing Management, Helping Clients Identify & Achieve Goals, Real Estate Investments
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Robert Eddy
Creative Capital Management, Inc.
(619) 298-3993
8880 Rio San Diego Drive, Suite 1150
San Diego, CA
Expertises
Planning Issues for Business Owners, Ongoing Investment Management, Estate & Generational Planning Issues, Retirement Planning & Distribution Rules, Cash Flow/Budgets/Credit Issues, Newlyweds & Novice Investors
Certifications
NAPFA Registered Financial Advisor, CFP®, EA

Edith Barschi
Edith B. Barschi, CFACFP, EA
(510) 486-0846
P. O. Box 10013
Berkeley, CA
Expertises
Investment Advice without Ongoing Management, Helping Clients Identify & Achieve Goals, College/Education Planning, Divorce Planning
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®, EA, MBA

Josette Hewitt
Al Hewitt Inc
(877) 254-9348
1120 West Ave M-4
Palmdale, CA
Expertises
Women's Financial Planning Issues, Advising Medical Professionals, Tax Planning, Ongoing Investment Management, Planning Issues for Business Owners, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, AAMS, ABA, ATA, ATP, CFP®, EA

Michael Chamberlain
Chamberlain Financial Planning LLC
(800) 347-1340
900 E. Hamilton Ave. Suite 100
Campbell, CA
Expertises
Hourly Financial Planning Services, Ongoing Investment Management, Middle Income Client Needs, Insurance Related Issues, including Annuities, Newlyweds & Novice Investors, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, AIF, CFP®

Robert Machado
Compass Rose Financial Planning
(760) 321-5305
5 San Marino Circle
Rancho Mirage, CA
Expertises
Hourly Financial Planning Services, Helping Clients Identify & Achieve Goals, Retirement Plan Investment Advice, Middle Income Client Needs, College/Education Planning, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MBA, MSFP

Michael Randolph
Randolph Managed Investments
(707) 573-1357
50 Old Court House Square, Suite 303
Santa Rosa, CA
Expertises
Ongoing Investment Management, Charitable Giving - Trusts & Foundations, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®, MS

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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