Comments on: Reader Question: I Don’t Have Much Savings So Can I Use Unused Credit as an Emergency Fund? http://genxfinance.com/reader-question-i-dont-have-much-savings-so-can-i-use-unused-credit-as-an-emergency-fund/ Helping a unique generation achieve financial independence. Fri, 25 May 2012 01:44:43 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Savings Accounts Girl http://genxfinance.com/reader-question-i-dont-have-much-savings-so-can-i-use-unused-credit-as-an-emergency-fund/comment-page-1/#comment-120805 Savings Accounts Girl Sat, 27 Jun 2009 05:07:54 +0000 http://genxfinance.com/?p=1602#comment-120805 It's okay to rely on a credit card if you're not in any time of financial crisis; but, to rely on it when money is tight can be dangerous - especially if fees are high, it will definitely put more debt on you. It’s okay to rely on a credit card if you’re not in any time of financial crisis; but, to rely on it when money is tight can be dangerous – especially if fees are high, it will definitely put more debt on you.

]]> By: sean http://genxfinance.com/reader-question-i-dont-have-much-savings-so-can-i-use-unused-credit-as-an-emergency-fund/comment-page-1/#comment-120801 sean Sat, 27 Jun 2009 01:19:02 +0000 http://genxfinance.com/?p=1602#comment-120801 If you substituted the word Retirement Fund for the word Emergency Fund would this make sense? Here is the real problem with this line of thinking in my opinion...personal finance is not rocket science, live below your means, stay away from debt, save a little money, start early, etc., yet all indications are that very few follow this advice...why is this? Because we won't change our behaviors. Using debt as a substitute for actually SAVING money does not change behavior and does not get us in the habit of using this stuff called CASH. Learn to SAVE not use DEBT. If you substituted the word Retirement Fund for the word Emergency Fund would this make sense?

Here is the real problem with this line of thinking in my opinion…personal finance is not rocket science, live below your means, stay away from debt, save a little money, start early, etc., yet all indications are that very few follow this advice…why is this?

Because we won’t change our behaviors. Using debt as a substitute for actually SAVING money does not change behavior and does not get us in the habit of using this stuff called CASH. Learn to SAVE not use DEBT.

]]> By: Jon http://genxfinance.com/reader-question-i-dont-have-much-savings-so-can-i-use-unused-credit-as-an-emergency-fund/comment-page-1/#comment-120793 Jon Thu, 25 Jun 2009 16:08:32 +0000 http://genxfinance.com/?p=1602#comment-120793 Why not do both? I use my credit card - which I always pay off at the end of the month - to cover unexpected expenses, allowing me to leave my money in the emergency fund for possibly another thirty days, earning interest the entire time, and earning me cash back rewards on the credit card purchase at the same time. The card has a pretty high limit and I have a couple other credit cards with zero balances just sitting in a secure location that I could pull out and use if I really had to. It's good to have multiple options available, in my opinion. Why not do both? I use my credit card – which I always pay off at the end of the month – to cover unexpected expenses, allowing me to leave my money in the emergency fund for possibly another thirty days, earning interest the entire time, and earning me cash back rewards on the credit card purchase at the same time. The card has a pretty high limit and I have a couple other credit cards with zero balances just sitting in a secure location that I could pull out and use if I really had to. It’s good to have multiple options available, in my opinion.

]]> By: pays to live green http://genxfinance.com/reader-question-i-dont-have-much-savings-so-can-i-use-unused-credit-as-an-emergency-fund/comment-page-1/#comment-120780 pays to live green Wed, 24 Jun 2009 13:29:56 +0000 http://genxfinance.com/?p=1602#comment-120780 I agree with Rebecca as well. Having cash on hand is way better than relying on a credit card company that cares more about making a profit than your emergencies. Having an emergency fund may not cover all situations, but it will probably cover most. I agree with Rebecca as well. Having cash on hand is way better than relying on a credit card company that cares more about making a profit than your emergencies. Having an emergency fund may not cover all situations, but it will probably cover most.

]]> By: Jeremy http://genxfinance.com/reader-question-i-dont-have-much-savings-so-can-i-use-unused-credit-as-an-emergency-fund/comment-page-1/#comment-120774 Jeremy Tue, 23 Jun 2009 17:46:27 +0000 http://genxfinance.com/?p=1602#comment-120774 That is a great point. Thanks for bringing that up. Like you said, there is a lot of uncertainty when it comes to credit cards and just when you might need it you could find your account gets closed, credit limit reduced, or interest rate hiked. That is a great point. Thanks for bringing that up. Like you said, there is a lot of uncertainty when it comes to credit cards and just when you might need it you could find your account gets closed, credit limit reduced, or interest rate hiked.

]]> By: Rebecca http://genxfinance.com/reader-question-i-dont-have-much-savings-so-can-i-use-unused-credit-as-an-emergency-fund/comment-page-1/#comment-120773 Rebecca Tue, 23 Jun 2009 17:40:39 +0000 http://genxfinance.com/?p=1602#comment-120773 I think the biggest reason not to rely on credit cards for emergency funds is that credit card companies can close your account at any time. In this economy, when people are more tempted than ever to rely on credit cards, the companies are more likely than ever to close the account right before you need it. I think the biggest reason not to rely on credit cards for emergency funds is that credit card companies can close your account at any time. In this economy, when people are more tempted than ever to rely on credit cards, the companies are more likely than ever to close the account right before you need it.

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