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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: An Ethical Thought Date:  9/16/2005  11:35 AM
Author:  srizkm Number:  210827 of 312307

That's what emergency funds are for. If you don't have one, start one.

My advice, anyway.

CPAScott -

Easier said than done for a number of people. Also, there are times where there are a number of hits to your emergency fund and this fund isn't at the level that it needs to be. Basically, it's always a good idea to have a fund set aside for emergencies but there are times where the emergencies are greater than the level of funds that you have set aside can handle.

Yes, it's all about how you budget and plan. But not everyone has the luxury of an emergency fund that can handle a security deposit, etc. due to a move to a new state($900) and replace the rear brakes on a 4x4 truck because the axle seals blew ($800 because the dealership had to do it so that the extended warranty could be used to repair the axles - brakes weren't covered by the warranty even if it was due to the failure of a covered part). Basically, there are things that happen in life where a credit card CAN help ease the financial pain. But you have to be smart about how you use them and be aware of the financial implications when you whip out that credit card.

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