Can credit cards help in emergencies?

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Yes, credit cards can indeed be helpful in emergencies. Brad Barrett emphasizes that credit cards can be used to handle most sudden expenses that arise, as they provide a way to manage payments even when immediate cash isn't available. In his view, expenses like car repairs or unexpected medical bills can typically be charged to a credit card, giving you the flexibility to pay the balance over time without needing immediate cash on hand. Barrett mentions that, in extreme cases, assets could be sold to cover the credit card balance, indicating a strategic use of credit in crisis scenarios 1.

Financial Emergencies

Brad and Jonathan discuss what constitutes a financial emergency and whether or not having an emergency fund is necessary. Brad argues that most emergencies can be paid for with a credit card, while Jonathan suggests having liquid cash on hand.

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303 | Structuring Your Emergency Fund | Stereo Live Q&A
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