Debt Dumper Club

So, what the heck is an emergency fund, why do you need one and how can having one help you with your debt problem?  An Emergency Fund is money that you set aside for the sole purpose of handling financial emergencies. What if you lost your job? What if you suddenly had to replace the AC unit in your home or have major repairs done to your automobile? These are all examples of emergencies that could devastate your finances.  If you are trying to pay off your debt, the last thing you need is something unexpected coming along to knock you off the path to debt freedom.  Although some believe that their credit cards can be used as their emergency fund, the last thing you want to do is to rely on credit cards or a loan to handle financial emergencies.  Using credit cards and loans for this purpose could make the problem significantly worse.