Credit Cards for Emergency-Use Only
How a Credit Card Can Save the Day in an Emergency
If you are like many Americans, you probably have several credit cards at your disposal. If this is the case, you need to realize that it is important not to max out every credit card you have. Although it may be tempting to max out your cards on that vacation you’ve been wanting to take or the new wardrobe you’ve been wanting to purchase, you should devote at least one credit card exclusively for emergency purposes only.
Ignorance Isn’t Always Bliss
No one really wants to dwell on the possibility of an emergency, but being prepared for an emergency is much better than being broadsided by one without any financial resources at your disposal.
If you are faced with an unfortunate situation, such as your washer or dryer breaking, you will need to be able to pay for either repairs or a new unit. Both can be pretty expensive. Having a credit card for such occasions is essential. It can help reduce your anxiety and make dealing with such a situation much easier. Rather than fretting over how you will afford to pay for the new, much-needed product, you can relax knowing that you have a credit card to cover such unfortunate events if you don’t have the cash instantly available.
Financial Disasters Loom Everywhere
Appliances aren’t the only expensive things that can go wrong in your life. Other unfortunate situations can add up very quickly as well, such as unexpected illnesses or automotive repairs. If you are out on the road and your car breaks down, you are going to need a credit card with available credit so you can have your vehicle towed and your car repairs will likely cost a lot of money too.
If life were perfect, you would never be faced with such unfortunate financial burdens, but we all know eventually something breaks. If you don’t have an emergency fund to handle such situations, you will need a credit card without a balance to cover them.
Take a look at your current credit cards and see if you can pay any off in the near future. If not, consider applying for a low-interest credit card and put it aside to be used for emergency purposes only.