Suze Orman's new credit card advice
Photo: Zoonar RF/Zoonar/Thinkstock
I want you to only pay the minimum due on your credit card balance, and instead, make it your top priority to build as much of an emergency cash fund as you can.

Let me tell you why I am now telling you to do this. With rising unemployment, having a big emergency cash fund is vital. The sad reality is that the credit card industry is taking actions to protect themselves with no regard to your needs or how good you have been in paying your bills on time. The problem is that most credit card companies are either reducing your credit limits, revoking your credit cards all together, raising your interest rates and are even paying you to close down your account.

Many of you are even finding that when you do finally pay off your credit card debt that the issuing credit card company of that card is closing that card down as fast as they can so you cannot ever charge on it again.

So here is the problem. If you do not have a stash of cash and you have been using all your extra money to pay down your credit card debt and they keep closing your cards down—what are you going to live on if you lose your job? Chances are you may not have any available credit limit to use to rely on since the cards are reducing those limits. You will not be able to get a new card since you are now not employed. So to help you in the event you lose your job, my advice is to pay just the minimum required on your credit cards every month and then use every extra penny you have to build your emergency savings fund.

Get Suze's credit card action step