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Does Your Emergency Fund Consist of Credit?

We have all faced emergency situations that we weren’t prepared for, like that unexpected car repair bill or the need for a new air conditioner.  When these life events happen, how do you cover the cost? How do you handle such financial situation when you haven’t got a plan for it? Are you using a credit card or worse, a Home Equity Line of Credit to pay for these unexpected expenses?  If you do it the wrong way, which is most likely the case, as the following article points out, you could be putting your house on the line.

http://www.savingadvice.com/articles/2013/01/16/1013540_using-credit-as-an-emergency-fund-is-a-bad-idea.html

Unless you are highly disciplined in paying them off, theses option accrue interest and using a HELOC puts your house on the line.  If you have found yourself in an endless cycle of debt because you don’t have a rainy day fund you, may want to contact a debt settlement attorney.  An experienced attorney in this area of law will be able to speak to you about your options.   It may be possible to settle your debt without the need for bankruptcy.

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.