Closing credit cards is a significant decision, especially when you’re concerned about financial emergencies. Here’s how you can approach this situation thoughtfully:

1. Build a Robust Emergency Fund: Focus on strengthening your savings to cover at least 6–12 months of essential expenses. This can act as your safety net in emergencies. Since you are working towards a ₹50 lakh emergency fund, staying consistent with this goal will give you confidence to rely less on credit.
2. Keep One Low-Cost Card: Instead of closing all cards, consider keeping one with a low annual fee or no fee. This way, you retain access to credit if needed, without relying on multiple accounts.
3. Create a Contingency Plan: Outline how you’ll handle emergencies, such as accessing funds through savings, liquidating investments, or using personal loans as a last resort.
4. Transition Gradually: Instead of closing all your credit cards immediately, phase them out. Start with cards you rarely use or that have high fees. This gradual approach ensures you’re comfortable with reduced reliance on credit.
5. Focus on Financial Discipline: Use this transition as an opportunity to review and strengthen your budgeting and financial planning practices. A well-managed budget reduces the likelihood of needing emergency credit.

By combining these strategies, you can minimize financial risk while feeling secure about your decision.