Additionally, credit card laws are changing constantly, and creditors are closing accounts left and right. If you rely on a credit card as your primary/sole emergency fund, you may find that your account is closed or your limit is lowered.

In the end anyways, (these numbers are my example), we’re talking about $30k in an e-fund. My credit card limits don’t even go that high! Relying on my credit cards alone won’t cover 3 month’s expenses.

On the other hand, I have no issues with using a credit card as part of my emergency “plan.” I’m set up in such a way that only $2k is instantly available. The rest of my e-fund is slightly less fluid (for monthly bills and the like)… or are in CD’s (for income replacement scenarios). In my case, my CC is my go-to, while I know that my “true” e-fund will pay off the CC ASAP.

None of those options make me sleep better at night.

We are debtfree (except mortgage) & have sufficient funds for an emergency.

Like, “Budget for the Funstuff”, we use credit cards for certain purchases, including emergencies & then IMMEDIATELY payoff the card. (the blessing of online access to accounts & online billpay!)

I/we do this for 2 reasons:
1. I love the points towards hotel rooms from my Marriott Visa.

2. Often, AMEX extends the warranty on items purchased and sometimes a return is easier if on a credit card vs. a cash refund (or a store imposed store credit).

I do not agree with using a credit card for an “emergency fund”…I think that is just a way of fooling yourself into thinking you are being fiscally responsible when you are not disciplined to save. That being said, in the past, when a debt has been reduced to $2500 or less, it was easier for me to pay it off with the savings then continue to make payments. Just getting that beast my back was worth it to reduce my savings.

When it comes to choices i.e. paying off debt or keeping $$ in savings, I think you have to decide what “keeps you up at night more?”….the debt or a reduction in your cash savings….