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Originally Posted by TromboneAl
Your liquid funds are for emergencies, right? So pay off the cards, and if you have an emergency, use your credit card. Am I missing something?
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You have it right Al.
The money in the savings account is an 'illusion'. $6K of it is not really there, because there is a negative $6K in cc debt.
The credit card makes so much more sense as an emergency fund in this case. If one is careful, they will not need to tap it, and the 'real' emergency savings fund will grow faster now that no money is going to interest.
Most things that people call 'emergencies' really are not. They are either predictable or avoidable. There are unfortunate exceptions, of course.
-ERD50
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