Can credit cards be used as emergency funds?

Using a credit card has always been associated with overspending and it seems quite unnatural that the same card can be actually used as an emergency fund. Although, you may not get a definite answer on the same, there are several options that can be analyzed before you reach the conclusions that the credit card can be used as an emergency fund. A majority of people accumulate credit card debts while using it as an emergency fund.

For the Americans however, there is hardly a second thought which comes into their mind and a credit card is the most common option for the Americans to use as an emergency fund. A majority of people feel that credit cards can be used as an option to get emergency money and the bills that get racked up behind is never a lookout for the consumers. It is this habit that has led the Americans into the greatest of financial deficiencies during recession. Fortunately, the credit card debt management services could deliver the people from their trouble and also their myths about using credit card irresponsibly. However, a credit card can actually act as an emergency fund but not for very big issues like health disasters etc but perfect for a car repair for instance. An emergency fund is ideally considered as a fund which can be utilized to tackle disasters but using a credit card as one may also expose it to a lot of risks at the same time. Let us assess the risks at first. Using a credit card as an emergency fund may actually leave you at the mercy of the regulations of the credit card companies. Your credit limit can be altered or changed suddenly and a few defaults will actually make you cash strapped when you will need your emergency fund the most. On having a closer look this may not be an emergency fund in the real sense of the term. Those consumers who have relied on the credit cards to pay their utilities, they have actually ended up accumulating huge credit card debts eventually. An emergency fund should ideally constitute the living expenses of one month and it may usually take a long time before you have accumulated a substantial fund therein. A credit card on the other hand will help you to have quick cash in hand and not make you fret to accumulate a good amount of money. To speak truly, it is better to avoid usage of credit cards as an emergency fund in order to avoid credit card debts.