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

Jan 22, 2024

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.

Aug 26, 2022

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. 25The 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.

Mar 21, 2022

3 min

Market jitters making you anxious? Our expert might have the remedy to calm your nerves.

So far, 2022 has been, in a word, volatile. With the emergence of omicron, supply chain issues choking the economy, inflation the highest it has been in decades and now the war drums beating in Europe, investors are getting nervous and the markets are showing the strain. As political guru James Carville once said, "It's the economy, stupid!" Following that sage advice, Augusta University’s Wendy Habegger is here to offer expert perspective to journalists looking to figure out just what’s going on with the markets and what investors and the public can expect in the coming months. Q: What's the best advice to give people when the stock market is on such a roller coaster ride? “Frankly put, if one can't stomach when the roller coaster drops, don't get on the ride. If one does not have much tolerance for risk, they should not invest in the stock market. If one is already invested in the stock market and breaking into a cold sweat every time they look at their stocks, then they need to take a cash position, meaning cash out of the stock market. The market does not reward anyone based upon their level of anxiety. What good is making gains on stocks if one will turn around and spend those gains treating their ulcers? I liken it to pro sports athletes who don't retire when they are still healthy. What good is all the money they earned if they are only going to be spending it on medical treatments for the rest of their lives? What kind of quality of life is that?" Q: With the market trending down right now, if people can invest, is this the best time to do so? “Whenever the market trends down, it is always a great time to buy stable companies with solid cash flows and certain commodities. Look for those companies and commodities that always do well regardless of what is happening in the economy. But remember my response to the above question. One should do this if and only if they can tolerate risk.” Q: Should people look at safer places to put their money for the time being, and what would some of those places be? “Again, this depends upon their level of risk tolerance. If they are risk tolerant, they should shift into less risky investments. If they are not risk tolerant, cash out and put it in their savings accounts or CDs.” Q: Does the emergency fund rule of thumb still come in to play, maybe now more than ever? “Yes, but I don't go by the standard rule of thumb for emergency savings – having three to six months of expenses saved. I teach students their goal should be to have 12 months of expenses saved. The three to six months rule is obsolete. We saw this with the recession of 2007-09 and with the pandemic. People need to be able to live without employment longer because there is no definitive time frame for when one will find gainful employment and the government should not be relied upon to support the mass population in the meantime. Also, even when the government does provide assistance, not everyone receives it and some still never recover from the aftermath. “ The economy is front and center for just about every American business, investor and household – and 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. If you’re looking to arrange an interview, simply click on her icon now to arrange an interview today.

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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

Experts Tips on Finding the Best First-Time Credit Cards

MoneyGeek online

2024-05-06

What APR might someone with no credit history expect from their first credit card?
Someone with no credit history will be treated like someone with a poor credit history. Credit card companies must financially vet those to whom they extend credit. If no credit history information exists, companies have no choice but to assume the worst. Therefore, one without a credit history should expect a credit card with a low limit and a high-interest rate. As the company can better assess one’s financial habits and the user proves their reliability, the limit will increase and the interest rate will decrease.

Can immigrant workers and international students without Social Security numbers apply for credit cards?
Yes, immigrant workers and international students without Social Security numbers can apply for and get credit cards. Credit is global. Some credit card companies are international or have international partners, so anyone who has a proven credit history and collateral and can satisfy the company's terms in its issuing country can get a credit card.

Are there any benefits of getting a credit card while still in college?
Yes. Getting a credit card and establishing one’s credit history allows young adults to get a head start on building a healthy FICO score before they need it. The FICO score has some variables that depend on the longevity and stability of accounts, so it is better to begin one’s credit journey sooner as opposed to later.

Is there any particular credit card issuer that's better than the others for first-time credit card users?
Depending on one’s personal situation, the best card is the one that is obtainable. I recommend first-time credit card applicants look at the financial institutions where they already have accounts, such as their personal banks or credit unions. The institution is already familiar with them because of those existing accounts and will be more likely to grant them a card. Also, new users shouldn’t be too concerned if the limit is low and the interest rate is high. If they are responsible credit card users, it won’t be long before they see their limits increase, interest rates decrease and new credit card applications appear in the mail. The key is just to get started.

Experts Insights on Finding the Best Business Cards for Balance Transfer

MoneyGeek online

2024-04-03

What are the main factors that businesses should consider when selecting a balance transfer card?
The point of a balance transfer card is to ease the burden of paying high interest on a debt obligation by moving the debt amount from a higher-cost card to a lower-cost card. This is similar to how homeowners may refinance their mortgages to get a lower interest rate. In this sense, businesses can “refinance” their debt by rolling it over to another card. However, before doing so, the business should consider the following:

What is the introductory offer for the balance transfer? How much for how long? Often, cards offering a balance transfer may offer 0% interest on the balance transferred for a certain period of time, say six months. Then, after six months, an interest rate is assessed.
What are the fees for doing the balance transfer? There is no such thing as a free lunch or a free balance transfer, so expect to pay a percentage of the balance transfer for the privilege.
What interest rate will be assessed after the initial 0% introductory rate expires? Is it higher than the rate already being paid with the current card?
Can the business pay off the transferred debt before the 0% introductory rate expires? If not, and if the interest rate assessed after the period is applied, is it lower or higher than what is already being paid?
While the business is paying down the debt, will it add to its current debt burden on that card? If a company transfers the balance at an introductory rate, any new debt put on that card is usually charged at a different rate that is not the introductory rate. So, balance transfer cards are best used when no additional debt is added to the card until it is paid off.

How can balance transfer cards impact a business credit score?
Yes, a business’s credit score will be impacted because applying for the balance transfer card will incur another creditor for that business. So, businesses may experience a temporary dip in credit score, which can be reversed and even raised upon fulfillment of the debt obligation.

Are there any drawbacks that businesses should be aware of when using balance transfer cards?
Businesses should read the fine print and understand all the balance transfer terms. They should only commit to the balance transfer if they can follow the terms and pay off the debt before the introductory rate expires.

BEST NO CREDIT CHECK LOANS IN 2024

WalletHub online

2024-03-25

What advice do you have for someone looking for a no-credit-check loan?

My advice to someone looking for a no-credit-check loan to run in the opposite direction. Under no circumstances should anyone look to obtain one of these loans unless they understand that they may become a potential victim of the vicious predatory borrowing/lending cycle.

What do you think it says about a lender when they don’t check applicants’ credit history?

The lending entities that do not check applicants' credit histories basically provide a one-size-fits-all option. Meaning, that regardless of one's credit worthiness, all applicants will be charged a high enough rate to make it beneficial for the lending entity. This means that one should expect the interest rates that will be charged are in the predatory range. Also, many of these loans may require an applicant to provide collateral. The loan contracts for these lending entities are structured to ensure they [the lending entities] come out ahead, either by receiving extraordinarily high payments [due to the high interest being charged] or by taking ownership of the collateral once the applicant defaults. It is a win-win for the lending entity.

Should people with good credit ever consider no-credit-check loans?

An individual's credit history is what determines the interest rate that the individual will be charged, so why would anyone pay more than they have to? An individual with a good credit score could receive an interest rate that is reasonable and in line with the current supply and demand of loanable funds based upon their credit worthiness with a credit-check lending entity. This rate would be less than what the no-credit-check lending entity would charge. Without knowing one's credit history, it allows the lending entity to charge any interest rate and the applicant must take whatever interest rate they are given regardless of their true credit worthiness. No one benefits from this model except the lending entities. Individuals with good credit scores will be charged the same rates as those with poor credit scores and thus pay higher interest than they should from an entity that performs credit-check loans.

In my opinion, NO ONE should ever consider no-credit check loans.

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Answers

What do you think it says about a lender when they don’t check applicants’ credit history?: The lending entities that do not check applicants' credit histories basically provide a one-size-fits-all option. Meaning, that regardless of one's credit worthiness, all applicants will be charged a high enough rate to make it beneficial for the lending entity. This means that one should expect the interest rates that will be charged are in the predatory range. Also, many of these loans may require an applicant to provide collateral. The loan contracts for these lending entities are structured to ensure they [the lending entities] come out ahead, either by receiving extraordinarily high payments [due to the high interest being charged] or by taking ownership of the collateral once the applicant defaults. It is a win-win for the lending entity.
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What advice do you have for someone looking for a no-credit-check loan?: My advice to someone looking for a no-credit-check loan to run in the opposite direction. Under no circumstances should anyone look to obtain one of these loans unless they understand that they may become a potential victim of the vicious predatory borrowing/lending cycle.
Continue reading
Should students get a credit card?: You are never too old or too late to get started with credit. A lot of students don't have a credit card and go on a cash basis. That's fantastic, but we're in a credit based society and it's good to have a foot in the door and a foundation started. If they have a need for credit, they have a good history.
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