Using Credit Cards As Your Emergency Fund

Not everyone has a liquid emergency fund, and for those who do, they might not want to dip right into their emergency fund right away.

Not everyone has a liquid emergency fund, and for those who do, they might not want to dip right into their emergency fund right away.

For those who don’t have much cash stacked away, there is good news: credit cards can be your miracle in emergency type situations.

Credit cards can be an incredible tool to utilize to help get you by for a short or long season (depending on your credit limit).

Plan out how much your monthly expenses are, and then plan for how much you plan to use on your credit card each month.

For those who only have one emergency expense that abruptly came about, you can create a simple payment plan so the debt doesn’t linger.

Remember to pay off your credit cards in a short period of time.

The main reasons being the following:

  1. Maintain a healthy credit score

  2. Spend less money on interest

  3. Keep making financial progress