No. of Recommendations: 2
Hi, welcome.

I think I can clarify what Tony was saying. Do not carry a balance, pay the bill in full every month. But if your card offers perks, use it. Charge everything you buy, including gas for the car and your groceries, and then pay it off in full so you aren't carrying a balance.

In terms of the safety net, he meant a temporary one, such as having your car break down somewhere. You need to pay the mechanic, you may need to rent a hotel room, buy food, etc. You can use your credit card, but again, pay it off in full every month. He didn't mean that your credit cards ARE your emergency funds, just that they can carry you through a temporary emergency until you get home. Then, if necessary, pull money from your emergency fund, pay the bill, then start putting money into savings again until you're back up to where you were.

Nancy
unfortunately, interest rates for savings are a lot lower than they were.
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