 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: Think Twice About Credit Card Purchases\n---------------------------------------\nCash is king during a financial emergency, since it costs nothing extra to pay with what you have in your checking account. On the other hand, putting purchases on a credit card can cost you in the form of interest charges. If you have rewards or cash back cards that you don't want to put in a drawer while you ride out a financial emergency, only use them for essential purchases you know you'll be able to pay off when the bill comes. Otherwise, it might be best to minimize credit card use while you're riding out a financial emergency.\nThere's another reason to avoid charging on your credit card during a financial emergency: Racking up credit card charges can ding your credit score. How? High balances raise your credit utilization ratio, or the percentage of available credit that you're using. That, in turn, harms your credit score and might make it more difficult to get a new credit card or loan if you need to borrow money down the road. Experts recommend keeping your credit utilization under 30%, but the lower, the better. END