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A client of mine, who happens to be a business owner, reported to me the other day that his computer died just days before a major project was finished and he had to run out and buy a new one. Since he didn’t have a couple of thousand dollars sitting in his bank account to replace the computer and his software, he had to use his credit card. “I was lucky to have the credit available” he reported.
My client says he was lucky, although I would say he was well-prepared. This is exactly why we work on our credit proactively — so that we have the credit available to handle emergencies. In my lifetime, I’ve seen firsthand (and through many, many clients) how a person’s credit can be crucial in an emergency. Here are four common emergencies that you should be prepared for:
I’m not just randomly listing horror stories. These things happen to thousands of people all over the country every single year. And do you notice something else? Even though there might be insurance or other financial protections to help ease the burden of these events, there is often a high upfront cost associated with your first response to the emergency. Unless you have thousands of dollars of cash sitting in your bank account, your credit will be crucial.
Don’t fool yourself into thinking these things won’t happen to you. They do happen, and I suspect that most of us will probably encounter at least one of these emergencies. That’s why it’s so important to take control now and work on your credit as the best first line of defense.
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