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I told her that even though she would have no cash to fall back on, if some HUGE emergency came up, she could always use her card.


I agree that available credit can function as an emergency fund. I've practiced the same.

In general, I'm a big fan of paying credit debt from current income for one simple reason. The lessons learned from paying with tomorrow's dollars for spending tomorrow's dollars are invaluable.

Without taking such lessons to heart, and to pocket, the "it'll be easy to handle later" frame of mind can become a big problem. The rescues move from self-resuce via savings to self-rescue via investments to self-rescue via raiding retirement savings to -- well, to something other than self-rescue. This can be family, bankruptcy, foreclosure, whatever.

If you're talking about small amounts of savings that will be built back up in a few months, raiding savings might make good sense. But if you're talking about a larger sum of hard-earned money saved for a specific purpose, falling back on it to erase CC debt could be a serious misstep.

Good luck,

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