2010 Frugal Living Guide
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When is taking on debt wise?

Are you using float to your advantage?
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Are you using float to your advantage?

Say your clothes dryer tumble-dries its last load. You'll be able to pay for a new one after payday in a couple of weeks, but you need to do laundry now. A wise way of using credit cards is to "use the 30-day float," says Tim Chen, CEO of NerdWallet.com, a credit card research site. Float is the grace period between making a credit card purchase and paying your bill in full to avoid interest charges. That means, buy the dryer now, and pay for it later in the month when you get paid.

"Using a credit card for the 30-day float between the time you buy something and the time you have to pay can be wise, as long as you pay the bill off on time," Chen says.


 

 

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