 TITLE: Using Credit to Bridge the Gap When You’re Living Paycheck to Paycheck CONTENT: How Credit Cards Can Help When You're Low on Cash\n-------------------------------------------------\nCredit cards generally have higher interest rates than other types of debt, but they can be an effective tool when you're in between paychecks. They're almost always less expensive than common last resort forms of financing, such as payday loans, and are a way to avoid expensive overdraft fees when money's already tight.\nIf you use a debit card, you may be charged an overdraft fee if a payment pulls from your bank account when you don't have enough funds available. Overdraft fees are often $30 or more, and some banks charge a fee every day your account has an overdrawn balance. If your bank's overdraft fee is $30 and you're overdrawn for three days, you'll end up owing nearly $100 in fees.\nWith responsible usage, a credit card can be a less expensive way to make necessary purchases. A credit card won't charge you any interest or fees if you repay the statement balance on or before the due date.\nHere's how it works. If you buy $50 worth of groceries with a credit card, you'll typically be able to carry that balance for a certain period before interest accrues. This so-called grace period is at minimum a 21-day gap between when your credit card's billing cycle ends and the payment is due.\nWhen your next paycheck arrives, you'll repay the credit card in full by your payment due date. This strategy lets you bridge the gap in between paychecks without owing more in fees or interest.\nYou may run into trouble if you don't repay the bill in full, because the credit card company will charge interest on the statement balance. If you can, it's important to always pay the credit card bill in full. END