Emergency funds create a financial buffer that can keep you afloat in a time of need without having to rely on credit cards or high-interest loans. It can be especially important to have an emergency fund if you have debt, because it can help you avoid borrowing more.
"One of the first steps in climbing out of debt is to give yourself a way not to go further into debt," says NerdWallet columnist Liz Weston.
Emergency funds create a financial buffer that can keep you afloat in a time of need without having to rely on credit cards or high-interest loans. It can be especially important to have an emergency fund if you have debt, because it can help you avoid borrowing more.
"One of the first steps in climbing out of debt is to give yourself a way not to go further into debt," says NerdWallet columnist Liz Weston.