Our economy is not yet firing on all cylinders, and some things have worsened recently. Last week, a Census report revealed that the ranks of Americans living in poverty increased by nearly two million last year, marking the second year in a row of poverty increases -- coupled with income decreases.

Here are the numbers: As of 2002, roughly 35 million Americans were living in poverty, representing 12% of the population. (Many experts estimate that it's actually significantly higher than that.)

According to a USA Today report, "The official definition of poverty varies by family size and age and can change annually with the cost of living. In 2001, a family of two parents under 65 and two children younger than 18 were considered poor with a household income below $12,207. That year, 32.9 million people were defined as poor."

Continuing employment issues are contributing to this sorry development. Lots of people are out of work and downsizing is continuing at many companies. As time marches on, more and more unemployed people will run out of unemployment benefits.

On the slightly bright side, for those determined to find one, the percentage of people in poverty has often been higher than current levels over the past 25 years. So things have been worse. Still, that's cold comfort for the nearly one in eight Americans struggling to survive.

Might you one day find yourself living in poverty? Perhaps. Many of the 35 million probably never expected it to happen to them. Sometimes all it takes are a few unlucky breaks and the lack of emergency resources. And while credit cards might seem helpful to someone struggling, in the long run, when abused, they can destroy your financial security even more than a job loss.

Educate yourself so that you can be prepared for rainy days and avoid drowning. And to learn how to be smart about credit and dig yourself out of debt, check out our Credit Center.

If you'd like a real human to talk over your specific financial situation with -- a financial planning professional, no less -- look into our TMF Money Advisor service.