Financial Emergencies

Dealing with financial emergencies

As with all financial matters, forward planning can help reduce the impact of a financial emergency and it is advisable to have an emargency fund should it be needed for whatever reason. Ideally the emergency fund should be equal to or more than three times the monthly salary of the highest earner in the household and be stored in a high interest account. It should also be easily accessible should you ever need it with a Visa debit card or even a cash card.

Alternatively you could have an emergency credit card, with a credit limit that should cover any circumstances and eventualities. The advantage of a credit card is that it is quicker to pay with in the case of an emergency than to have to get cash out. But on the other hand it is much easier to abuse a credit card as it is money you don't actually have and then have to pay it back with interest.

For more information see our glossary: financial emergency | emergency cards