Wendy Habegger, PhD

Lecturer in the James M. Hull College of Business

  • Augusta GA UNITED STATES
  • James M. Hull College of Business

A respected finance expert available to offer advice on making the right money moves and handling the ever changing stock market.

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Spotlight

2 min

Can you benefit in transferring high-interest credit card debt?

Photo credit: paulaveryevans According to Lendingtree, Americans have over $1 trillion in credit card debt. The average American has around $6,500 in credit card debt. When you factor in the high interest that credit cards charge, it can be a daunting task to get the balance to zero. Many cards offer 0% APR on balance transfers for certain length of times. But is it worth it if you don’t plan on paying off the entire balance during the promotional period? Wendy Habegger, PhD, senior lecturer in the James M. Hull College of Business, said you need to be careful when taking advantage of such offers. “The benefit one would get in this situation is short-lived,” said Habegger. “While one might enjoy no interest for the promo period, when that period is over, the interest rate they are charged could be more than the credit card from which they transferred. My recommendation is that if one does a balance transfer, then only do so if you are able to pay off the balance before the period ends.” Some may think of doing a second balance transfer but Habegger said that it is not a good idea and could have a negative impact on a person’s credit score. It also gives the appearance the customer is at increased risk of default, which could trigger an even higher interest rate and higher fees. Not only may one incur higher rates, it could certainly impact their credit score, which can have a long-lasting financial impact. Even a large purchase on a 0% APR card will affect someone’s credit score. “A large purchase indirectly impacts one’s credit score based on credit utilization,” she added. “If one uses more than 30% credit utilization, it could impact credit scores.” Personal debt and credit are trending and important topics in America today and if you're looking to know more, we can help. Wendy Habegger is a respected finance expert available to offer advice on making the right money moves during volatile times. To arrange an interview, simply click on her icon now.

Wendy Habegger, PhD

2 min

Expert Help: Augusta University faculty offers financial advice for college students

The world of finances isn't always an easy one for students to navigate. Wendy Habegger, PhD, senior lecturer in the Hull College of Business, suggests several ways college students can improve their financial literacy, even after their collegiate career. Habegger said most don’t have a good grasp of what that is, despite being one of the most foundational building blocks to help students start off on the right foot. “They should know their credit scores just as quickly as their GPA and they should protect it just as vigorously,” Habegger said. She also suggests students have a credit card but with the caveat they use it wisely and be sure to pay their bills in a timely fashion. While they might like using cash, having a credit card will start to build a good credit history that they’ll likely need down the road. “The sooner they get started, the better they are of having good credit when they leave (college),” she added. When looking at their student loans, there are ways they can be better prepared when they start having to pay them back. During that deferral period, she suggests students really consider what a job may pay. Also, when selecting a payment plan for college loans, make sure it’s something they can make monthly payments on without any problems. She also said people need to think about public service jobs that may offer loan forgiveness or asking a potential employer about any loan forgiveness programs. “Some employers out there will offer some sort of that. The military is a good career and they are happy to be help pay off your student loans. Other businesses may offer that as well. It can be a good perk on both sides of the table, for the company and student looking for a first time job.” This is great advice and an important topic, so if you’re a reporter looking to know more, then let us help. Wendy Habegger is a respected finance expert available to offer advice on making the right money moves during volatile times. To arrange an interview, simply click on her icon now.

Wendy Habegger, PhD

2 min

What does Joe Biden's forgiveness of student loans mean for debt relief?

President Joe Biden has made progress on a campaign promise to provide relief for those burdened with student debt. This plan offers targeted debt relief as part of a comprehensive effort to address the burden of growing college costs and make the student loan system more manageable for working families. The President is announcing that the Department of Education will: Provide targeted debt relief to address the financial harms of the pandemic, fulfilling the President’s campaign commitment. The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). No high-income individual or high-income household – in the top 5% of incomes – will benefit from this action. To ensure a smooth transition to repayment and prevent unnecessary defaults, the pause on federal student loan repayment will be extended one final time through December 31, 2022. Borrowers should expect to resume payment in January 2023. -White House Fact Sheet, Aug. 25 The announcement made big waves politically and news coverage is still heavy with reactions to the plan and just who it will benefit. “For some students, they will be completely debt-free afterward," said Wendy Habegger, a lecturer of finance in the James M. Hull College of Business at Augusta University. "The majority are still not going to be debt-free but instead of you having to pay an extra year, it might cut your pay time down. What this is going to do is give you money to start doing some of the other things that you have put off. You can now focus on building up an emergency fund, building up a savings account. You can put it toward your retirement.” The announcement also includes extending the student loan pause a final time through Dec. 31, 2022. “One of the good things about this debt reduction and debt forgiveness is that the Biden administration is making some very firm attempts to go in and fix some of the payment programs that are broke. So when individuals have to start paying in January, they will be able to pay a reduced amount,” said Habegger. “What’s not going to stop is the accrual of future debt. So we really need to look at the underlying problem and the costs of higher education and see if we can bring that down.” This topic will require ongoing coverage, so if you’re a reporter looking to know more, then let us help. Wendy Habegger is a respected finance expert available to offer advice on making the right money moves during volatile times. To arrange an interview, simply click on her icon now.

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Biography

A lecturer of finance in the James M. Hull College of Business

Areas of Expertise

Finance

Accomplishments

Professor of the Year

An award that is given by the Beta Gamma Sigma

Education

Florida State University

Doctoral degree

Finance

Georgia Southern University

Master's degree

Mathematics Teacher Education

Augusta State University,

Bachelor's degree

Mathematics

Media Appearances

Credit Card issues: Hull College professor weighs in

Augusta Business Daily  online

2024-07-22

A James M. Hull College of Business professor at Augusta University says to be careful in ways you are reducing your credit card debt.

She responded recently to a Lendingtree survey indicating Americans have more than $1 trillion in credit card debt and the average American has around a $6,500 balance.

Many cards offer 0% APR on balance transfers for certain lengths of time. But is it worth it if you don’t plan to pay off the entire balance during the promotional period?

Wendy Habegger, PhD, senior lecturer in the James M. Hull College of Business at Augusta University, said people need to be careful when taking advantage of such offers.

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Best 0% APR Credit Cards in 2024

MoneyGeek  online

2024-07-01

Could making a large purchase on a 0% APR card affect one’s credit score?
A large purchase indirectly impacts one's credit score based on credit utilization. If one uses more than 30% credit utilization, it could impact credit scores. ~~~~

Could you benefit from a 0% APR offer on balance transfers even if you don’t plan to pay off the entire balance during the promo period?
The benefit one would get in this situation is short-lived. While one might enjoy no interest for the promo period, when that period is over, the interest rate they are charged could be more than the credit card from which they transferred. My recommendation is that if one does a balance transfer, then only do so if they are able to pay off that balance BEFORE the promo period ends. Otherwise, the benefits do not outweigh the costs.

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Easiest Credit Cards to Get Approved For

WalletHub  online

2024-06-28

Are the easiest credit cards to get necessarily the worst credit cards on the market?

No. First, consumers should understand that getting a credit card is not a right, it is a privilege and that credit is relative to the consumer. If a credit card is "easy" to get, then that means the applicant has a good credit score and is viewed by the credit card provider as having a low risk for default. Therefore, they received a credit card with little or no trouble. Likewise, if a credit card is "hard" to get, then that means the applicant had a poor credit score and is viewed by the credit card provider as having a high risk for default. Therefore, they received a credit card with a high interest rate and low credit limit or were denied the credit card. So whether one gets a credit card or not is dependent upon the customer and their financial history, habits, and riskiness.

Why aren't credit cards easier to get?

As I mentioned in the question above, getting a credit card is not a right, but a privilege. When one applies for a credit card, they are asking the credit card company to:

To be on call 24/7 to provide them a loan to purchase whatever they want, up to the credit limit they have been granted. So customers are using the credit card company's money and not their own.
To give them an interest-free grace period for the money they borrowed for the cash the credit card company loaned them. So customers have about 30 days to pay the credit card company back their money.
So, if someone is going to provide this type of service, there needs to be trust that the consumer can in fact repay the loan to the credit card company every time they borrow the credit card company's money. This is where credit score comes in. Consumers with higher credit scores are more creditworthy as they are less likely to default on the credit card company. Consumers with lower credit scores are less creditworthy as they are more likely to default on the credit card company.

What advice do you have for someone who's having trouble getting a credit card?

If someone cannot get an unsecured credit card, then they should get a secured credit card and comply with the terms for as long as it takes to raise their credit score so they can qualify for an unsecured credit card. This also means they will have to assess all their financial spending habits, purge any negative ones, and adopt positive ones. Pay bills on time, do not spend beyond their means, and do not max out their credit utiliza

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Answers

Might it be worth transferring high-interest credit card debt to a 0% balance transfer APR card and then transferring the outstanding balance at the end of the promo period to another 0% balance transfer APR card?
Wendy Habegger, PhD

I do not recommend this tactic. While someone might be able to do this a few times, it will eventually catch up with them and have a negative impact. All credit-related actions are captured and documented on one's credit report, and this juggling gives the appearance that the customer is at increased risk of default. This will trigger being charged an increased interest rate. So, future credit providers will see this pattern and eventually deny the customer's application for the balance transfer. Until a customer's application is denied, they should be expected to pay higher balance transfer fees because of their increased default risk.

Continue reading
Could you benefit from a 0% APR offer on balance transfers even if you don’t plan to pay off the entire balance during the promo period?
Wendy Habegger, PhD

The benefit one would get in this situation is short-lived. While one might enjoy no interest for the promo period, when that period is over, the interest rate they are charged could be more than the credit card from which they transferred. My recommendation is that if one does a balance transfer, then only do so if they are able to pay off that balance BEFORE the promo period ends. Otherwise, the benefits do not outweigh the costs.

Continue reading
Could making a large purchase on a 0% APR card affect one’s credit score?
Wendy Habegger, PhD

A large purchase indirectly impacts one's credit score based on credit utilization. If one uses more than 30% credit utilization, it could impact credit scores.

Continue reading
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