0% Credit Cards in the UK
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Are
Credit Cards good for emergencies. |
Most financial advisors agree that it is fine to keep a credit card for emergencies, if you have good self-control. There are plenty of times when you may need one. Any number of situations come up that require immediate payment and cash is not an option. Just be sure you can cover your expenditure with cash at the end of the month, when the payment is due. Financial experts encourage you to keep your credit card at home instead of in your wallet if you have a history of uncontrolled spending. You will have it available if needed but will not be tempted to use it for non-emergency purchases. Most people get into financial trouble when they run up their credit cards to the maximum. At that point, you are paying mostly just the interest with each monthly payment. It has been found that on a maxed out credit card it could take 25 or more years to actually pay off. And that is if you are not adding any more charges! When you choose a credit card to keep for an emergency, you should still be aware of the APR (annual percentage rate) charged. Get a card with the lowest possible APR. Also, choose a card with no annual fee. Most credit cards have stopped charging a yearly usage fee. Avoid that if possible. Get the credit card when you still have good credit. Keep it stashed away so you don’t use it for everyday items. Financial experts say that you should always have 3 - 6 months worth of living expense in cash savings as a cushion. That way, if an emergency comes up you will be able to handle it. You could lose your job or have unexpected medical expenses. The credit card can still be kept as a back-up. But don’t use the credit card to live beyond your means. You will end up paying much more than something normally costs and you are still paying for them long after they are gone. Keep your credit card put away and use it for emergencies only. |
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Copyright 2008 0% Credit Cards UK Guide Articles
By Kate Spencer. All rights reserved |
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