Comments on: Is It OK to Bridge the Gap With Credit Cards? http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/ Money issues for college students and 20-somethings, without being boring. Tue, 24 Apr 2012 13:02:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Roger http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-71368 Roger Sun, 22 Feb 2009 07:27:09 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-71368 Interesting thoughts. It sounds as if you've got a pretty good handle on your plans, as well as having thoroughly considered all the possibilities available to you, at least from your comments. My thoughts: it sounds as if, short of getting some windfall before you get out into the workforce, you'll probably best using your credit cards to bridge the gap. It's not so much credit cards that are bad, in and of themselves; it's the unmonitored and uncontrolled use of credit cards that gets people into trouble. Given all your effort on this blog, I have no doubts you'll be able to stay on top of things. Interesting thoughts. It sounds as if you’ve got a pretty good handle on your plans, as well as having thoroughly considered all the possibilities available to you, at least from your comments.

My thoughts: it sounds as if, short of getting some windfall before you get out into the workforce, you’ll probably best using your credit cards to bridge the gap. It’s not so much credit cards that are bad, in and of themselves; it’s the unmonitored and uncontrolled use of credit cards that gets people into trouble. Given all your effort on this blog, I have no doubts you’ll be able to stay on top of things.

]]> By: lifewithbadcredit http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70850 lifewithbadcredit Wed, 11 Feb 2009 18:52:03 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70850 The fact that you are writing about this alone is a sign that you are on the right track. Most people would spend without thinking twice and use a credit card as a backup when cash is low. Learning to live within one's means is a great thing, makes you feel empowered. Once you've done this, as it sounds you already have, then making a decision to use credit responsibly is OK. The fact that you are writing about this alone is a sign that you are on the right track. Most people would spend without thinking twice and use a credit card as a backup when cash is low. Learning to live within one’s means is a great thing, makes you feel empowered. Once you’ve done this, as it sounds you already have, then making a decision to use credit responsibly is OK.

]]> By: Stephanie http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70779 Stephanie Fri, 06 Feb 2009 20:46:08 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70779 Back on the original topic, just in case anyone is curious: The average interest rate of a personal loan from a bank? <a href="http://www.bankrate.com/brm/updates/ybir/ybir_state.asp?prodInit=L&produid=51" rel="nofollow">13.02%</a>. Higher than my higher-rate credit card. The only advantage there is that on a personal loan, that rate is locked, whereas credit card interest rates are variable. So a personal loan is a wash as far as I'm concerned - not better or worse than a credit card... just harder to get! Back on the original topic, just in case anyone is curious: The average interest rate of a personal loan from a bank? 13.02%. Higher than my higher-rate credit card. The only advantage there is that on a personal loan, that rate is locked, whereas credit card interest rates are variable. So a personal loan is a wash as far as I’m concerned – not better or worse than a credit card… just harder to get!

]]> By: R. May http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70730 R. May Wed, 04 Feb 2009 14:28:36 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70730 AH no! You can forbear (not defer) your loans! If you don't have access the them thorugh the DOE website thats your first step. First consolate them. Then apply for financial hardship forbearance. It is not the same as deferrment because interest accrues BUT the interest on a student loan is nothing compared to a credit card. AH no! You can forbear (not defer) your loans! If you don’t have access the them thorugh the DOE website thats your first step. First consolate them. Then apply for financial hardship forbearance. It is not the same as deferrment because interest accrues BUT the interest on a student loan is nothing compared to a credit card.

]]> By: ladders http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70718 ladders Wed, 04 Feb 2009 04:05:33 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70718 Hi there - Just wanted to say that I pulled off the CC gap bridge in 2004-05. Have you seen the film "Bridge Over the River Kwai"? I haven't, but I've seen a picture of the bridge... it's a rickety bridge. That's a good metaphor. I finished college by living off credit cards (majored in Business). Perhaps a sign of the times, my annual interest expense was only a few hundred even though my revolving balances topped out at about $15k. I opened a new account every few months for the balance transfer or 0% rate, and shuffled the balances pretty well. Got my first job a few months after college ($14/hr) and luckily was able to parlay that into a better paying one after six months. Then, paid all cards off over the 2nd year after graduating. The biggest caveat is that once you're rolling the cards, your "life" decisions become "financial"; i.e. you might want to be choosing your career based on the people you work with and the contribution you can make to society, but you can't when you're strapped for cash. Meanwhile, I've paid my cards off, but I still have a sort of financial phobia disorder which causes me to save money like a squirrel preparing for winter. This is both good and bad. What are your other options? At the time, mine included living with parents, begging, long-term camping, renting a trailer, etcetera. So, given the options I had available, I have no regrets. Hi there – Just wanted to say that I pulled off the CC gap bridge in 2004-05. Have you seen the film “Bridge Over the River Kwai”? I haven’t, but I’ve seen a picture of the bridge… it’s a rickety bridge. That’s a good metaphor.

I finished college by living off credit cards (majored in Business). Perhaps a sign of the times, my annual interest expense was only a few hundred even though my revolving balances topped out at about $15k. I opened a new account every few months for the balance transfer or 0% rate, and shuffled the balances pretty well.

Got my first job a few months after college ($14/hr) and luckily was able to parlay that into a better paying one after six months. Then, paid all cards off over the 2nd year after graduating.

The biggest caveat is that once you’re rolling the cards, your “life” decisions become “financial”; i.e. you might want to be choosing your career based on the people you work with and the contribution you can make to society, but you can’t when you’re strapped for cash. Meanwhile, I’ve paid my cards off, but I still have a sort of financial phobia disorder which causes me to save money like a squirrel preparing for winter. This is both good and bad.

What are your other options? At the time, mine included living with parents, begging, long-term camping, renting a trailer, etcetera. So, given the options I had available, I have no regrets.

]]> By: Slinky http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70712 Slinky Tue, 03 Feb 2009 15:57:47 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70712 @Stephanie - I'm one of those people that believe there is always SOMETHING you can do to improve your situation. I also believe that nothing changes unless you change it. People may not want to do what it takes to change things, but the option is there. My fiance came from a small town like you describe in a very depressed area. Nearly everyone he went to school with has moved away. He works IT now, another is a legal aide for a Judge, another is a police detective. @Stephanie –

I’m one of those people that believe there is always SOMETHING you can do to improve your situation. I also believe that nothing changes unless you change it. People may not want to do what it takes to change things, but the option is there.

My fiance came from a small town like you describe in a very depressed area. Nearly everyone he went to school with has moved away. He works IT now, another is a legal aide for a Judge, another is a police detective.

]]> By: Carnival of Personal Finance 190: Buddy, Can You Spare a Dime? « Funny about Money http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70702 Carnival of Personal Finance 190: Buddy, Can You Spare a Dime? « Funny about Money Mon, 02 Feb 2009 22:20:25 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70702 [...]   Poorer than You   Is It OK to Bridge the Gap with Credit Cards?   Stephanie contemplates the possibility that her student loans will start to come due before she [...] [...]   Poorer than You   Is It OK to Bridge the Gap with Credit Cards?   Stephanie contemplates the possibility that her student loans will start to come due before she [...]

]]> By: Stephanie http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70696 Stephanie Mon, 02 Feb 2009 18:30:03 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70696 @Slinky - definitely, finding a way to make it work is the best thing you can do, and I'm glad you found a way in your own situation! The best that any of us can do is make ourselves ready to jump at opportunities when they come our way - no matter how small the opportunity may be. My first car was very similar to your first car - one foot in the junkyard, it leaked gas and was rusting all over, but it got me to my first job every day. It still seems to me, though, that the smaller your town, the harder it is to get on your own feet. No public transportation, fewer jobs (especially part time ones or ones that are hiring), and if you live out on the outskirts, miles between you and any place of business. I'm not sure what the solution is, except to save every penny that comes into your hands, and make sure that everyone you know knows that you're looking for work and transportation. People can't help you if they don't know you need it. @Slinky – definitely, finding a way to make it work is the best thing you can do, and I’m glad you found a way in your own situation! The best that any of us can do is make ourselves ready to jump at opportunities when they come our way – no matter how small the opportunity may be. My first car was very similar to your first car – one foot in the junkyard, it leaked gas and was rusting all over, but it got me to my first job every day.

It still seems to me, though, that the smaller your town, the harder it is to get on your own feet. No public transportation, fewer jobs (especially part time ones or ones that are hiring), and if you live out on the outskirts, miles between you and any place of business. I’m not sure what the solution is, except to save every penny that comes into your hands, and make sure that everyone you know knows that you’re looking for work and transportation. People can’t help you if they don’t know you need it.

]]> By: Slinky http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70694 Slinky Mon, 02 Feb 2009 17:20:24 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70694 @Stephanie - I didn't have a car until half way through college. I worked a job 45 minutes away by working at the same place and working the same hours as a friend who did have a car. I took two hour bus rides to work a job across town. That was actually great for getting reading assignments done. I finally found a job two blocks from my apartment and worked there for the next couple years. My family wasn't in a situation to help either. I didn't have a car until I was two years or so into school when my brother bought a new used car and gave me his 14 year old 200,000+ mile junker of a car. I only got that car because it was only worth a couple hundred dollars simply because it ran and HE owed ME money. I had bought his books for him a couple times when he was in school. He got the car because the dealers wouldn't take it for a trade in when my parent's bought a new used car. Funny, they said the thing was worthless! (Not to me!) Things are never simple, but if you really want to or you really need to, you find a way to make it work. I did whatever it took because that was the only way I'd be able to put myself through school. I hated every minute of college, but I made it through. @Stephanie – I didn’t have a car until half way through college. I worked a job 45 minutes away by working at the same place and working the same hours as a friend who did have a car. I took two hour bus rides to work a job across town. That was actually great for getting reading assignments done. I finally found a job two blocks from my apartment and worked there for the next couple years.

My family wasn’t in a situation to help either. I didn’t have a car until I was two years or so into school when my brother bought a new used car and gave me his 14 year old 200,000+ mile junker of a car. I only got that car because it was only worth a couple hundred dollars simply because it ran and HE owed ME money. I had bought his books for him a couple times when he was in school. He got the car because the dealers wouldn’t take it for a trade in when my parent’s bought a new used car. Funny, they said the thing was worthless! (Not to me!)

Things are never simple, but if you really want to or you really need to, you find a way to make it work. I did whatever it took because that was the only way I’d be able to put myself through school. I hated every minute of college, but I made it through.

]]> By: Stephanie http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70693 Stephanie Mon, 02 Feb 2009 16:47:46 +0000 http://poorerthanyou.com/2009/01/28/is-it-ok-to-bridge-the-gap-with-credit-cards/#comment-70693 @Slinky - things are not always that simple. From my own experience: the reason I didn't start working until the summer after my freshman year was that I didn't have a car. No car meant no way to get to jobs, no jobs meant no money for a car. When your family isn't even in the financial situation to help you get a junker, it can be very difficult to get started. @Slinky – things are not always that simple. From my own experience: the reason I didn’t start working until the summer after my freshman year was that I didn’t have a car. No car meant no way to get to jobs, no jobs meant no money for a car. When your family isn’t even in the financial situation to help you get a junker, it can be very difficult to get started.

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