I always use my credit card for emergencies. Can I just not do that?
Yes and no. Yes, you can use your credit card for emergencies, especially if time is of the essence and you can’t readily withdraw from your fund. Perhaps, if your credit card allows you to divide the expense into zero-interest installments, using it is a good idea. However, you still have to pay that credit card debt.
That’s why you CANNOT use your credit card as your emergency fund. There’s no other way to do it than actually saving and keeping cold, hard cash.
Again, you can use your credit card for emergencies, but you cannot use it as your emergency fund.
Money question answered by Fitz Villafuerte
Fitz Gerard Villafuerte is a Registered Financial Planner who writes at fitzvillafuerte.com. His blog, “Ready To Be Rich,” won several honors, including the Best Business and Finance Blog at the Philippine Blog Awards. He’s recognized by Moneysense Magazine as among the Top 12 Most Influential People in Personal Finance in the Philippines. He is a guest speaker in various television and radio programs, and a corporate speaker/trainer for several socio-civic organizations. He’s also the Director of Wealth Arki, an investment consultancy and financial planning firm that helps Filipino families achieve financial goals.
Popular money questions
Categories: Budgeting / Emergency Funds
Buy this book!
