How will you pay for an unexpected expense? You don’t know what it will be, or when it will happen, or how much it will be. I promise you, though, it will happen. It might be a car repair, a vet bill, a new water heater, a new phone, a new computer, the list goes on and on. How will you pay for it? Or them? Credit cards are easy and convenient. But then you have to pay off that card, right? But you didn’t have money for the tires, so you don’t have money to pay off the card. Then your dog eats something weird, and it’s off to the vet, with that same credit card, only the balance is now going to be $1000 (at least). You dig yourself into debt, one emergency at a time. Those tires and that vet bill will cost you a lot more over time because of the interest on the credit card.
What can you do? Start saving–a little every paycheck–for your emergency fund. Build it up over time and use it to pay for unexpected expenses. It might not be enough; but every bit helps. For the higher interest credit card balance, see us about a Personal Loan. With regular payments, it will pay down easier than a credit card. Keep credit cards for convenience but try not to run a balance.
If you’re ready to give yourself a financial security net with an emergency fund, start saving today!