Comments on: Emergency Funds: Cash vs. Credit http://blog.taxresource.ca/emergency-funds-cash-vs-credit/ Canadian Tax Help & Financial Planning Resources Sat, 13 Mar 2010 21:23:29 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: PMT http://blog.taxresource.ca/emergency-funds-cash-vs-credit/comment-page-1/#comment-3643 PMT Fri, 20 Jun 2008 15:58:25 +0000 http://blog.personal-money-tips.com/?p=96#comment-3643 Good point and I agree the bank can cancel the line of credit. That is a real issue right now. But if you have enough equity or a small enough mortgage it's still a reasonable option. Good point and I agree the bank can cancel the line of credit. That is a real issue right now. But if you have enough equity or a small enough mortgage it’s still a reasonable option.

]]> By: Philip Brewer http://blog.taxresource.ca/emergency-funds-cash-vs-credit/comment-page-1/#comment-3644 Philip Brewer Fri, 20 Jun 2008 13:14:50 +0000 http://blog.personal-money-tips.com/?p=96#comment-3644 The problem with relying on credit for your emergency fund is not the extra risk that you're taking with your investments, the problem is that no ordinary lines of credit available to customers are guaranteed. If your situation takes a downturn--the value of your house goes down, you lose your job, you run up a bunch of medical bills--the bank that offered you a line of credit can (and will) cancel it. The situation is doubly bad, since that's exactly when you're likely to need your emergency fund. I wrote an article on the topic here: http://www.wisebread.com/dont-rely-on-credit-for-your-emergency-fund Thanks for the link to my "Things to insure" article! The problem with relying on credit for your emergency fund is not the extra risk that you’re taking with your investments, the problem is that no ordinary lines of credit available to customers are guaranteed.

If your situation takes a downturn–the value of your house goes down, you lose your job, you run up a bunch of medical bills–the bank that offered you a line of credit can (and will) cancel it. The situation is doubly bad, since that’s exactly when you’re likely to need your emergency fund.

I wrote an article on the topic here:

http://www.wisebread.com/dont-rely-on-credit-for-your-emergency-fund

Thanks for the link to my “Things to insure” article!

]]> By: Should I Buy Insurance? http://blog.taxresource.ca/emergency-funds-cash-vs-credit/comment-page-1/#comment-3645 Should I Buy Insurance? Tue, 17 Jun 2008 18:20:20 +0000 http://blog.personal-money-tips.com/?p=96#comment-3645 [...] MSNBC Money ← Emergency Funds: Cash vs. Credit [...] [...] MSNBC Money ← Emergency Funds: Cash vs. Credit [...]

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