<prompt> Human: What I really want to know is if I had a spare 5000 wouldnt I be better, paying it off a loan. I would be able to retrieve that money with some paper work, but may take too long for the emergency at hand. So a credit card could save you temporally? Why isnt this a default plan? Edit: Thanks everyone for the education. Ive never had money to learn some of these things. Ive just started my first budget. Hoping I can comeback soon with some advice on what to do with real not hypothetical money.  <response>: Emergency funds should be kept in high interest savings accounts. That is a perfect place for them. 