We face natural and manmade disasters, job losses and medical emergencies daily. Sadly, there are no plans in place for many Americans about these unexpected disasters. It raises the pain that they feel when a catastrophe occurs.
Establish an emergency savings fund so that whether you encounter a reduction in hours or are laid off money is available to pay the bills. Most experts recommend that you set aside enough to cover 6 months of expenses, some even recommend saving the expenses worth one year. To help avoid the temptation to use the vacation funds or other non-emergency purchases, put the money into a separate savings account.
Open credit card with emergency. Set the card aside, so that you know that credit line is available in case of an emergency. Although it is not fiscally wise to rely exclusively on a credit card, when there is a short-term financial need it is good to have the extra funds available. The best bet is to find [low interest credit cards], so if you are unable to pay off the entire balance within the grace period, you won't have to face steep interest payments.
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