Credit card companies refund your money

Are you prepared for the chance that your airline might go bust? Skybus passengers had a scary weekend, finding out Friday that all the carrier's planes were heading out of service.

Pay WiselyIn a surprise announcement, the airline stated that "rising jet fuel costs and a slowing economic environment" were insurmountable issues.

"We deeply regret the impact this decision will have on our employees and their families, customers, vendors, suppliers, airport officials and others in the cities in which we have operated. Our financial condition is such that our Board of Directors felt it had no choice but to cease operations."

The carrier continued flying through the day Friday, but those were the last Skybus planes passengers could fly on. The scariest part, especially for passengers already on vacation, is that the airline didn't make any arrangements for stranded fliers. Instead, they advised passengers to contact their credit card agencies to arrange refunds, and presumably for temporary credit extensions to let them buy new tickets.

But what if you didn't use a credit card to pay for your ticket? Hopefully you bought travel insurance (I almost always turn it down) or maybe you bought tickets through a travel agency - one whose insurance covers this kind of problem. No?

Tough luck. Unfortunately, some Skybus passengers certainly learnt this lesson the worst way.

Always back up major purchases, especially airfare, by using a credit card with a consumer protection policy. If you're worried about debt, transfer the funds the second the transaction goes through. It works for car rentals, hotels, airfare, and tours. If you're paying in advance and the service isn't delivered, the credit card company will reimburse you. If you pay cash or debit, you're usually on your own.