Thursday, January 29, 2009

Is *Now* a Good Time to (Wisely) Use Credit?

I've mentioned that I have a few more months worth of cash in my savings accounts. But after that? I'd be broke.

I don't own a car, or a house, and I'm single. Unless I tapped my old 401k or emaciated IRA, I'd have no money.

I'm starting to get some preliminary responses to my resume, but as of yet no contracts are signed and no projects initiated. In addition, it's a brutal job market.

My mother is very close to retirement age, and having issues with her job (she thinks they might be pussyfooting around trying to manage her out of her job). In addition to some other reasons for her, I don't feel I could count on her for much financial support.

So...I've been thinking about using my zero-balance credit card for some of my basic expenses: groceries, my storage unit, cell phone bill -- just the things I absolutely need each month. It would be a way to extend my cash a bit, and given that my credit card balance is at zero, I wouldn't be accruing much in interest, and I would have a tiny minimum payment.

I want to be clear that I would not use the credit card for things like going out to dinner, or buying anything non-essential.

I'm just trying to cover my butt, since I don't have a boyfriend/husband/family who could help me out.

What do you think?

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