Line of Credit a Good Emergency Fund?
Dave explains why it's not a good idea to use a line of credit as an emergency fund.
Tim is working on his debt snowball and has one or two months worth of expenses for emergency savings. He’s not worried about emergencies because he has a line of credit that he would use. Is a line of credit a good emergency fund?
Read what Dave says:
Do you really think it’s a good idea to go into debt in the middle of an emergency? A line of credit is not a good emergency fund. You should have cash available – 3-6months worth of expenses. Then pay your house off and invest in real estate. You’ve got to do this in the right order.
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