Best Terms

• The best credit card is the one that gives you the most favorable terms: the lowest interest rate or lowest minimum payment. This is especially important during difficult economic times, when you might not have as much cash available to make purchases or to pay off your credit cards. If you have more than one credit card, read the terms of your agreements to determine which card has the best terms for your situation.
  
  

Debit Cards

• If you are having financial problems, a debit card may be preferable to a credit card. Debit cards take money directly out of your checking account, preventing you from spending money you do not have. Conversely, if you use more credit than you can pay back at the end of the month, you face interest and penalty charges, causing you to pay more in the long run and creating additional financial pressure.
  
  

Secured Credit Cards

• Although secured credit cards can help you rebuild your credit if you have had financial problems, they may not be suitable during tough times. Secured credit cards often charge higher interest rates than regular credit cards, and you may have to pay annual membership fees or high over-the-limit fees if you use these cards. In addition, if you don't use these cards responsibly you can do more damage to your credit score.
  
  

Considerations

• During tough economic times, you may be in danger of overusing credit because you don't have the available resources to buy everything you need. It is important to be vigilant about your credit use. Keep track of your debt balance and do not spend more than you can pay back at the end of the month. If you are having trouble paying monthly bills, overusing your credit may add to your financial problems.