With my income of 50k as a medical intern, there is just NO WAY I can pay my student loan down as aggressively as I have been. I graduated from medical school with 51k of student loan. How in the world is my student loan balance 7k now, only 8.5 months into my first year of work?
I certainly didn’t manage to make 43k more than an average intern.
The following describes what I did over 2.25 years. I started actively managing my debt in since 2007 with various time frames/ credit card offers because it is SIMPLE and GUARANTEES 1000’s of tax free return annually for my time 🙂
All I did was shifting money around to minimize AND delay interest.
The first credit card of choice I started with was CHASE SLATE. It offers FEE-less balance transfer during the first 60 days of opening the credit card and promotional interest of 0% for 15 months.
All I did was,
- Check my credit score (no point applying if I think i have no chance of getting approved. why waste a hard inquiry and injure my credit score?)
- Apply for CHASE SLATE card online
- Get the balance transfer check in the mail in a few days
- Read the fees/interest rate of the balance transfer checks carefully… (each person’s offer MAY vary)
- Write a check of 15k to pay down my student loan
- Enjoy 15 months of 0% interest instead of 6.8% on a principle amount of 15k
- This equals $1275 guaranteed tax free savings for the 1.25 year starting with the date my balance transfer check is cashed by my student loan servicer.
The fact that this “savings=income” is TAX FREE and GUARANTEED, it’s just as good, if not better than index funds investment. And if you know which card to open and use, it literally is just few mouse clicks and writing a check!
Now you might wonder what happens after the 15 months up, when the interest rate jumps from the sweet 0% to the bitter 20%. This is the very moment credit card company has been waiting for to get back at you.
But as smart as you are, you won’t let that happen 🙂
See the next post for what happens next!