I remember a few years ago when everything I looked at was a 12 per cent yield or greater. But every now and again I would find a 20 per cent plus yielder that I just couldn’t say no to EVEN if I didn’t have the money.
So I used to get myself in a lot of cashflow trouble (which I always recommend because it means you are hungry and always looking for the deal) because I would over commit my funds and have to raise finance in an emergency.
I remember one time my debit card failing to clear at a petrol station AFTER I had filled up with petrol. Very embarrassing! I had to leave my gold ring as security and borrow 70 quid from my friend nearby.
What saw me through those days were credit cards. I had about 4 credit cards with around 15,000 credit limit in total. I would borrow for around 50 days or so or whenever their discount period finished.
I always recommend you have emergency finance which you can call upon as this is what will keep your portfolio alive and will also mean you can capitalise on that bargain that comes your way. I regularly make applications for credit cards just so I can have them. I think it helps me sleep!