The economy is hurting and credit markets are in the tank. In fact, it's easy to understand why all the media hype concerning the credit crunch has consumers scared about what the future will hold. So should you close all your credit card accounts, begin stockpiling your paychecks in cash under the mattress, and avoid using credit altogether? That's simply not the solution to the problem.
Times are tough, but remember that the basic rules of personal financial planning never change. Whether the economy is good or bad, you should live within your means, save the difference in an emergency or retirement fund, and pay down debt. So keep your credit cards open, pay your balance off each month, build your credit score, and you will emerge from this crisis financially better off than those who don't.
