credit cards

As loans dry up, small companies are increasingly resorting to credit cards to fund their operations, and many end up with the same debt troubles as consumers.

If you purchase on plastic, you may have benefits you don't even know about, including extended warranties and theft protection.

If you have a mortgage, carry credit cards and are considering a home equity loan to cope with soaring food and energy prices, you should be paying attention to what the Fed has to say.

After fostering the explosive growth of consumer debt in recent years, financial companies are reducing the credit limits on cards held by millions of Americans, often without warning.

As banks tighten requirements for loans, many small business owners are relying on credit cards for capital, prompting card providers to offer up special business accounts.

Stacey Vanek-Smith reports.

Plastic offers an array of protections and sweet perks -- many of which cardholders don't bother to use. Just don't let the goodies tempt you to go into debt.

Buying gasoline with a credit card could be hurting your local independent gas station owner - and you may have to pay for it.

The pitfalls may be obvious, but there are also benefits -- if the cards are used responsibly. Here's how having more plastic can work to your advantage.

Interest rates on home mortgages, credit cards and even car loans have been dropping for months. They could fall even more if the Federal Reserve decides to slice short-term rates again when it meets Wednesday.

But before you start shopping for a new car or mortgage, check your credit reports.