Funding dreams on credit: Bike champ
Part 1: Gene Hamilton charged up mountains, fueled by desire, credit cards
5 PEOPLE WHO FUNDED
THEIR DREAMS ON CREDIT
Dreamer: Gene Hamilton
The dream: Being a professional mountain bike racer
How used credit cards: During each racing season, he paid for gas, hotels and airfare with his credit card, racking up as much as $10,000 in debt each summer.
How he paid off the debt: He worked two jobs in the fall and winter to pay off the debt his summer debts and save up toward the following season.
Advice for others: Before you put anything on a credit card, make sure you have a plan to pay it off. Always pay at least the minimum, and make your payments on time.
The back story: Gene Hamilton rode his mountain bike to stay in shape, but dreamed about going pro. At the time, in the mid-1990s, the top professional racers were making six-figure salaries, but most got by only on whatever prize money they could win.
"I really thought one day I was going to make it big -- that was my dream, and I was out there chasing it," Hamilton says.
For five years, Hamilton spent summers racing. Sometimes, he slept in his Toyota minivan to save money. In winter, he paid off his credit card debt and saved about $2,000 for the following season by working two jobs, putting in 70-plus hours a week. One winter, he worked as a snowboarding coach by day and a DJ at night.
He says he never missed a payment: "I've got phenomenal credit," he says. "I don't recommend this for someone who's not responsible with money."
He never made it big as a pro racer: He earned $2,900 in prize money in his best year. But he eventually used his racing skills to open a mountain bike coaching company, BetterRide. "I'm not saying I ever became a great racer, but I became a great coach," he says.
- Bobbi Rebell's money moguls' 'Financial Grownup' moments – ShreShrewd money managers reveal their financial 'aha' moments in Rebell's new book ...
- ‘Loaded’ author Sarah Newcomb: Call them loan cards, not credit cards – In a new book, the behavioral economist talks about the role credit cards play in the financial tales we tell ourselves ...
- Q&A with David Carlson: How side hustles can pare debt – Millennials struggling with student debt can take on extra work to get out of the red, blogger turned author David Carlson says. It worked for him ...