Author Topic: credit card ballance transfer  (Read 2573 times)

BonesByDay

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credit card ballance transfer
« on: July 28, 2015, 08:12:00 PM »
Ugh, this is pretty embarassing.  the quick of the story is: I currently have a credit card debt of $13,000.  The current APR is 16.24%.  I have been thinking about doing a ballance transfer to a credit card that has a 0% APR for 18-21 months. I wanted to know people's thoughts.

Now here is the more indepth situation.  I am currently an orthopaedic surgery fellow making ~$68k/year prior to taxes.  I am in my last year of training.  in 12-15 months I will begin a job that will likely pay me between $200-300k/year as a first year attending ($200 being below the average for a 1st year orthopaedic attending).  I am doing my fellowship in an expensive area, so my thought is to transfer the ballance so that I don't have to worry about it accruing interest this year as I struggle to pay it off. 

The other factor is that if have about $400k in med school loans accruing interest currently but I have already decided not to start paying those back until I become an attending.

So I was hoping to get a little advice on the situation.  All help and advice is appreciated.  Thank you

trailrated

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Re: credit card ballance transfer
« Reply #1 on: July 28, 2015, 08:20:33 PM »
Sounds like you are going to get a huge boost forward once you finish up. I think the most important thing now is to practice the skill set that is going to keep you rich with such a high rate of pay. You should focus on paying off the debt and budgeting and being efficient. Learning how to manage money is more important than receiving money. 

BonesByDay

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Re: credit card ballance transfer
« Reply #2 on: July 28, 2015, 08:39:02 PM »
I agree. 

However, does it make sense either way to transfer my ballance to a 0%apr? Would that be a smart move?

kendallf

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Re: credit card ballance transfer
« Reply #3 on: July 28, 2015, 08:44:58 PM »
I agree. 

However, does it make sense either way to transfer my ballance to a 0%apr? Would that be a smart move?

Yes.  Don't let that be the impetus to run it back up, however.  When you get that high paying job, avoid "living like a doctor" for a few years and you'll be debt free and have options long before your peers..

trailrated

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Re: credit card ballance transfer
« Reply #4 on: July 28, 2015, 08:48:08 PM »
It will save you about ~$2,000 so I would. At the same time though I would focus on paying off the balance on the 0% card rather than waiting till you are earning more to touch it.

Lski'stash

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Re: credit card ballance transfer
« Reply #5 on: July 28, 2015, 08:50:04 PM »
Yes. Definitely transfer the balance over if you can. Also, you might want to look at posting a case study on here. I bet the folks around here can help you save quite a bit of money, even before you finish your fellowship.

Welcome!

dess1313

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Re: credit card ballance transfer
« Reply #6 on: July 29, 2015, 12:26:19 AM »
Ugh, this is pretty embarassing.  the quick of the story is: I currently have a credit card debt of $13,000.  The current APR is 16.24%.  I have been thinking about doing a ballance transfer to a credit card that has a 0% APR for 18-21 months. I wanted to know people's thoughts.

Now here is the more indepth situation.  I am currently an orthopaedic surgery fellow making ~$68k/year prior to taxes.  I am in my last year of training.  in 12-15 months I will begin a job that will likely pay me between $200-300k/year

Congrats on getting that far along.  Its not an easy program.  Yes do the transfer.  The promotion will be longer than the rest of your fellowship.  Make sure you're aware of any minimums that must be paid monthly or any other stuff that would disqualify you from the 0% and turn the interest back on

Keep it up living frugally even after getting your future job and you'll be paid off and saving big fast once you're there.

milesdividendmd

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credit card ballance transfer
« Reply #7 on: July 29, 2015, 04:45:48 AM »
A balance transfer is a no brainer. The key thing is selecting a card with no transfer fees.

The Chase Slate comes to mind...

As an MD (EP cardiologist) about 6 years ahead of you and a devoted miles game player I would be happy to help you figure out the mechanics.

PM me if interested.
« Last Edit: July 29, 2015, 06:32:17 AM by milesdividendmd »