Here's a better way to think about emergency funds if you're stuck in debt and stressed out

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Here's a better way to think about emergency funds if you're stuck in debt and stressed out.

If you're stuck in debt because you're worried you don't have enough cash, here are some helpful things to consider, according to Sanborn Lawrence.We love to think of ourselves as independent, especially when it comes to our money. But don't get bogged down thinking you have to be overprepared for an emergency. Instead, just be appropriately prepared. Consider what supports and resources you have in place now that you could count on in the future if you encountered a problem.

Of course, cash is a great place to start. But also take inventory of the family, friends and community members who would offer you an extra job if you needed it, or maybe give you a place to stay while you get back on your feet. If you're in a partnership or marriage, talk to your significant other about how much they could cover if you lost your job.

Look around, notice the supports you have today and feel grateful. Doing so may ease your stress and give yourself the boost you need to keep going.Remember when your parents told you that a credit card was for emergencies? They weren't lying. If you've got available credit across one or more credit lines, you can think of this as a form of emergency money.

Of course, this comes with a big caveat: Credit cards are a very expensive form of "cash." But when the choice is between prioritizing building an emergency fund or paying off credit card debtSure, there's risk: If the water heater breaks, you'll probably have to pay for the unexpected repair with a credit card. Your balance will go back up — temporarily.

Using a 0% APR credit card can help you save on interest if you need to cover an unexpected cost with a credit card. The

 

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