For many years our household could not cover an unexpected bill in cash. We simply did not have a plan for our money even though we had a large income. We were living paycheck to paycheck. This meant no cash savings. When an unexpected bill popped up we relied on credit cards to bail us out. For years this strategy seems to work, as the added debt only increase our minimum payments slightly, not causing us too much pain.
This cycle when on for ten plus years before our creditors called our bluff. We had maxed out five different credit cards to the tune of $109,000 worth of consumer debt. With no more credit available and no cash on hand we finally realized that our strategy had to change. So when I read a recent report by the Associated Press that stated Two-thirds of Americans would have difficulty coming up with the money to cover a $1,000 emergency, I can relate.