Do you really need a credit card in case of an emergency?
If you’re anything like me, and every other millennial out there, at one time or another you’ve believed the story that having a credit card was part of being an adult.
A normal, mandatory thing that all grown-ups have and use.
The story is that we all need a credit card in case of an emergency. Then there’s all of the great marketing painting the picture that the more successful you are, the fancier your credit cards become – think those platinum, gold-plated, diamond-encrusted, super-dooper kind. Maybe you’re even still attached to these stories.
Well, I’m here to propose a different story to you… Wouldn’t you rather have your own money in case of an emergency?
Your personal credit card limit is likely no more than around $5,000 or $10,000 and, in all honestly, if that’s the extent of your emergency funding, you may fall short in the case of a genuine emergency.
And how about rather than throwing down your titanium AMEX at dinner next, you just pay with your own money… like, isn’t that actually more of a sign of success than spending borrowed money?!
It’s actually kind of funny when you stop and think about it!
And just in case you’re still thinking you need a credit card to pay for things online, that’s also not true.
These days all of our bank cards are Visa or MasterCard Debit so we can use them to book and pay for anything we need to, using our own money instead of the banks (which, by the way, psychologically helps you to reduce wasting money on things you don’t really need).
If I haven’t quite convinced you yet, or you’re still worried about what it’s really like to live without a credit card, have a read of WE Member Anna Cochrane’s recent post on her experience of liberating herself from the credit card trap this year, and how she’s coping without it.
Disclaimer: all information contained within this article is of a general nature. Do not rely upon it when making financial decisions. Please consult a professional financial advisor or planner (like us!) before acting.