Should I keep a CC for emergencies?

oakdale_minx

This week I have finished paying off all my unsecured debt :j

the last 2 of my 6 :eek: CC's went into the tub of ice in the freezer on Thursday.

Today, I took three of them out, phoned up and closed the accounts and cut up the cards.

Three left. I'm going to close the accounts of two more and cut them up tomorrow. (wasn't brave enough to do more than 3 today!!!)

Should I keep one back? The one with the smallest limit (£600) frozen in ice for an absolute mega emergency?

I have enough disposable income now not to need one at all from day to day any more (although still the secured loan to clear) but I was wondering for maybe on holiday, if money was stolen or something similar???

Or should I take a deep breath and consign it to the bin snipped to pieces like the others???????

GirlRacer_2

Hi OM,

I've got a CC for emergencies only. Not had to use it yet, but it's there just in case.

When you put your credit cards in the freezer, does it damage them. If I freeze mine then decide later I want to use them again, are they OK?

Often wondered about this and never had the guts to try it out!!!!!

p.s Excellent news on paying off all your CC's

misscutiepie1984

get rid of it too.......... i used to juggle from card to card. Now for the past 2 years i have had no loans, no credit cards and no overdrafts. If you pay for everything in cash then you will feel a sense of achievement and it will make you think twice about spending in the future.

Hope this helps

Amy

nick1977

Keeping a card for emergencies is a good idea IMO, provided you have the willpower to use it *just* for emergencies!
As you say, you never know when some emergency might happen, and if the card is clear you can pay for whatever it is, and have about a month to sort out where the money is coming from (e.g. savings, overtime) before you incur any interest.

Willpower is the key though!

Nick

RichardCancoon

Dont bother to keep an emergancy CC, open a savings account and add 50-100 pound a month in there. in a short time you will have an emergency stash to use if needed. CC = Evil :P

immoral_angeluk

Personally i would keep an emergency card until I'd saved up enough 'rainy day fund' to cover anything that crops up, then I'd cut up the card.

nick1977

misscutiepie1984 wrote:

get rid of it too.......... i used to juggle from card to card. Now for the past 2 years i have had no loans, no credit cards and no overdrafts. If you pay for everything in cash then you will feel a sense of achievement and it will make you think twice about spending in the future.

Hope this helps

Amy

Amy
Sorry, but can you explain what the debt in your signature is, if you have no loans / credit cards / overdrafts. Is it your Mortgage?

Nick

clarab_3

I think everyone is different - but i can see me keeping a card with (say) a £500 limit. Enough to get me home from anywhere in the world in case of an emergency basically - it wont stay in my purse day to day. I honestly believe that my experiences over the past few years have given me the self control not to spend on it otherwise.

Last month despite my rubbish debt situation I started a small savings account, £50 a month, as there are always little emergencies derailing my best budgeting intentions.

Ive read somewhere that it is best to have 3 -6 months expenses in savings if you possibly can. That will take me a while, but I dont think I will consider myselfout of the financial mire until I have...

oakdale_minx

Thankyou for all the advice. I think I will keep the lowest APR one in the freezer in its tub. It has a £600 limit and will be the ultimate emergency card if I need to buy a ticket or something similar urgently that can only be paid for with a CC.

It won't ever emerge from the back of the freezer unless it is a huge problem and I'll talk to you all about it if it ever happens anyway to get support!

thankyou

misscutiepie1984

nick1977 wrote:

Amy
Sorry, but can you explain what the debt in your signature is, if you have no loans / credit cards / overdrafts. Is it your Mortgage?

Nick

I used to have a mortgage with my ex and paid a lot of things on credit card and i became 21k in debt on CC, Loans etc..... when we split i cut up my CC paid off my 2k overdraft and am now in a DMP paying of my remainding debt.... but i have NOT taken out any more credit. I have no used any form of credit in the past 2 years.

Hope this makes sense

Amy

postingalwaysposting

i would say close it... i asked this when i was debt free last time... everyone said close it ~ i didnt... i didnt even freeze it so when i was having a bad day i went on a spending spree... i am now back in debt :doh: once i am debt free this time i will close my account... all of them... i have some savings at the momment but to be honest i shouldnt have any real emergencies anyway :rotfl: