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The Choice: Replace a broken refrigerator by tapping an emergency fund or signing up for a store credit card


A store credit card is such a dangerous come-on. By signing up for one, you might save 10 to 20 percent on a purchase or earn bonus rewards. But you could also find yourself in hot water if you fail to pay your bill in full and on time: Store cards often charge 25 percent interest on unpaid balances—around 10 percentage points above the average rate for most credit cards. Plus, opening another line of credit isn't likely to improve your credit score if you don't have enough money to pay the entire balance every month.
The Better Bet: Emergency fund

The Choice: Take Social Security benefits at age 62 or tap retirement savings sooner than expected


Collect Social Security at 67—full retirement age for anyone born after 1959—rather than at 62, and your monthly benefit will be 30 percent larger. (Just think about how difficult it would be to earn a return like that on any investment without taking on significant risk.) Until your Social Security checks arrive, offset any financial drain on your retirement by getting a part-time job, if possible, or draw on your retirement savings.
The Better Bet: Retirement savings

The Choice: Don't contribute to a 401(k), even though your company provides matching funds, or make only the minimum payment on a credit card.


You may not be able to swing more than minimum payments right now, but you can never afford to pass up free money. Many employers offer a 50 percent match on contributions, up to a certain limit. Let's say you put 6 percent of your salary in a 401(k). Your employer will kick in another 3 percent, which will make your overall contribution 9 percent and give you an immediate 50 percent return on your money. Plus that money will continue to grow over time.
The Better Bet: Credit card

Suze Orman's latest book is The Money Class: How to Stand in Your Truth and Create the Future You Deserve (Spiegel & Grau.) To ask Suze a question, click here.

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