Wednesday, August 20, 2008

Credit cards for emergency expenses

Wow, it's been a crazy couple of days due to Hurricane Fay. She dumped tons of water on Central Florida and has displaced many residents. Luckily, I had no damage to my home and only slight water damage to the hotel.

This storm made me think about my financial goals for this year. I tend to pay for everything in cash as much as possible but I will confess that I have a couple of low balance credit cards. I don't really think about emergency situations to often, but I really think that is a good idea to have a few Credit Cards that you can use in the event of emergency. Take this storm for example, if you have damage to your home or auto many times the insurance companies will say that they will reimburse you for expenses. I know for a fact that this happens because I see it all the time when people stay at the hotel after a hurricane or fire. You need to have some sort of balance available to you for emergency expenses to cover at least one to two weeks of living expenses including hotel, food and clothing. Credit Cards can be obtained fairly easily and many have no annual fees. Just something to think, but if you do decide to get a credit card the point is to keep it free of any balances so that you are not paying interest and so that it is available when you need.


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2 comments:

Sherry said...

credit cards can be your best friend and worst friend as well. Just have to use wisely.

Sassy Mama Bear said...

If used for emergencies only credit cards are a very good thing to have. Sadly in this economy people are trying to survive off their credit cards and it is only going to cause more problems.