How to Manage Your Credit Card in a Bad Economy

1. Watch your spending

This one's pretty obvious, but worth bringing up. If you're worried about the economy, simply do not continue to spend the same way you did two years ago. If there is any uncertainty about your job or salary over the next few years, spend less, work to eliminate your debts, and try to put money away to pull you through any potential rough spots. And if those rough spots never materialize, you have a nice nest egg for the future.

2. Understand that credit cards face a slump, too

Your credit card company faces problems from the economic downturn too, which means they're more wary than usual. Usually, tactics like calling up your company and asking for an increased credit limit work very well. But right now, that sort of phone call may actually inspire your creditors to look more closely at your financial history. And, if they deem it appropriate, reduce your limit.

3. Keep a close eye on interest rates

Now more than ever, it's essential that to watch interest rates and make sure you get the best deal possible. This is not the time to stick with a credit card that offers poor financial tactics out of misguided loyalty or the lack of initiative to make a change.

Chances are that the economic downturn will see more and more people relying on their credit cards. You may be one of them, but don't let it spell financial disaster. Stay credit card savvy and weather the economy as best you can!