Emergency Fund
Your Credit Card is Not an Emergency Fund
You know that you need an emergency fund. An emergency fund can help keep you solvent when unexpected financial catastrophes arise. Many people, though, forget that a good emergency fund is one that you build up over time, so that you have a reserve of cash. A credit card does not fall into this category, no matter how much you would like it to. The simple fact of the matter is that a credit card is not an emergency fund, and it shouldn’t be considered as such.
Why Credit Cards Make Bad Emergency Funds
The whole point of having an emergency fund is so that you can tap into your resources without needing to resort to using debt. Using a credit card as an emergency fund defeats that purpose. Instead, you end up with more debt when you use a credit card to fund your emergencies. The interest you pay on the credit card is also quite high. U
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