runningfishy
Banned
- 2,874
- 19
- Joined
- Sep 25, 2005
OK guys so last summer I took a trip to San Fran and decided to live outside of my means and ran up a platinum citicard with a $1200 limit. That card had no interest for a year and the year is now up.
I paid the card 3/4 off last month but car troubles have me at $1184 in the hole again. Today I signed up for a bank of America card with an $800 limit with 0 interest for a year. I think I am going to use all $800 to pay off the citicard and pay the remaining $384 myself. That way Ill owe $800 interest free and have a year to pay it off. Is this smart?
Btw, I am a 20 year old college student working min wage. Every now and then I make lump-sums of money from working camps and whatnot so I should be able to do this, right?
As some has said, it's extremely terrible of you to fall into this habit of rolling over your debt. Ultimately, the debt spiral will KILL YOU, just like it has w/ many other things.
Fortunately, it is manageable and easily fixed if you can change your habits.
What you want to do is just pay off the principal and evaluate your liquidity needs. Know how much you spend, and what you spend it on. Make adjustments.
As far as all the credit card transfer goes, it's terrible for your credit and it's a sign that you are going under-water.
The best solution is to ask your folks to pay it off, if your savings can afford it, then tap into it. The interest rates on credit cards are just absurd!!