How to use credit cards wisely in financial emergencies

financialexpress.com:

A large number of people across the world prefer to use credit cards for making payments these days. However, having a credit card does not mean that you use it for regular payments and big purchases whenever needed. It is a useful financial product when you are facing a financial crunch. We all know that emergencies can strike at any moment, catching us off guard and putting a strain on our finances.

Situations like medical emergencies, sudden home repairs, or unexpected travel expenses can immediately require funds we may not be able to arrange on time. That is why, having a credit card can be a game-changer.

Credit cards are a valuable tool during emergencies, providing quick access to funds when needed. However, using them unwisely can lead to debt traps and financial strain. Here are some useful tips to help you handle emergencies effectively.

A sudden health crisis may require immediate hospitalization. In that case it is essential to evaluate the urgency and necessity of the expense. In critical situations like medical emergencies, using a credit card for hospital bills or medication might be unavoidable. However, you must ensure to repay the borrowed amount on time.

Also Read: 8 key investment strategies for maximising returns

Suppose you need to travel due to an unforeseen travel requirement for a family emergency. In this scenario, you must first understand your credit card’s features related to travel. For instance, some cards offer discounts on flight tickets and hotels. Utilising these benefits can significantly reduce expenses during unplanned travels, reducing financial burden.

Adhil Shetty, CEO, Bankbazaar.com, says, “During emergency travel needs, credit cards’ travel benefits become crucial. They