Saving During Tough Times: Five Questions to Ask Yourself

Economic Survival Question 5: Do You Have Access to Credit?

If you've lost your job, or you've missed a few bill payments, credit card companies probably aren't going to extend any credit to you.

"Putting things on a credit card is not the best solution, it might even be the worst solution, but you do have to factor it into the equation, because not everyone can time their layoff," Yochim said. "First of all, keep -- don't close -- credit cards. Use them. Keep your credit active, otherwise they can close your account, or lower your limits. They only want to extend lines of credit to people who can use it." In addition to saving, Holgate, the Seattle woman we introduced at the top of this story, built up a line of credit. She has a combined $20,000 line of credit on her two credit cards, just in case she needs to use them. And she opened a home equity line back in 2006. At the time, she had wanted to free up extra cash to remodel her bathroom. But having more than $60,000 available might also help her in a pinch -- as long as her lender keeps the line open, not a given in these days of tight credit.

If you're still working and in a good situation, Yochim advised, it may be a good idea to open a home equity line of credit. But it's important to remember that HELOCs are a last resort.

"It's a good thing for homeowners to have available, but to never use," Yochim cautioned. "You don't want to trade unsecured debt for secured debt -- don't trade the roof over your head."

But, she says, "There are true emergencies and if you need access to cash that's it and you get a tax break on interest. The same could be said for credit card offers: "Don't open them willy-nilly but if you can get it, go for it."

For the long-term, Yochim says it's not the percentage you put away that matters as much as how many months of expenses you can actually cover.

If, for example, you don't have any dependents and you can get work to tide you over in a layoff, Yochim says it's fine to have a three-month emergency fund. But, if you are the sole bread winner and you have dependents, estimate how long it would take to get another job in your industry and then, Yochim said, add three months to that.

If she does get laid off, Holgate isn't banking on another job in her industry. Instead, she's now planning her own gardening business and will apply for a business license soon.

It's possible to improve your situation in tough times: Here's what you need to know to get on that same road.