The Importance of an Emergency Fund To Avoid Filing For Bankruptcy

One of the most effective strategies for staying out of credit card debt is building an emergency fund. Here’s why.
When unexpected expenses arise—like medical bills or car repairs—having an emergency fund means you won’t have to rely on credit cards to cover the costs.
Start small, even $500 can make a huge difference in giving you peace of mind. Emergency savings can help you avoid high-interest debt from being the go-to solution when life happens.
The key is consistency. If you can’t build a large emergency fund all at once, aim to set aside a fixed percentage of your income each month. Once you have a cushion, you’ll feel much more secure.