I use all of the above, or at least pack along the options for them, though I don't always use them. I like to have some lempiras when I head there, saved from a previous trip or ordered online and picked up at my bank; you can also change from US$ at the airport. I take some US cash in 1s, 5s, and 10s. I take traveler's checks for places (Spanish schools, dive ops, lodgings) that accept them; find out ahead if there's an additional charge for their use, sometimes 5-10%. I don't like to pack around a lot of cash so I mainly use an ATM card as I go. Watch the fees - they can really add up, and be sure to tell your bank and card companies you'll be using your card in Honduras. Happy trails!

travel.state.gov Honduras for a heads up

insuremytrip.com cheap wise for me usually Patriot

or Amex Global Travel Shield for me.

Onebag.com leave expenive electronics at home theft magnet

For me capitalone.com no foreign fee CC for everything Backup

USD in my moneybelt works great for me there.

TCs lots of fees hard to cash not worth it.

US PassPorts are worth $3k keep them in my moneybelt

with everything else of value in there worn to the front

UNDER clothing... I go down there a lot to help needy folks

in dodgy areas like hh4honduras.org dummy "throw down" wallet

wide if travelling outside major tourist areas.

Lastly room safes are not safe EVERYONE has the general combo

that supercedes your personal one so do not use.

Have fun,

Check with your home bank if they have affiliates in Honduras. I was pleasantly surprised my trip to Mexico last week. I was able to use Santander or Scotia bank (as a BoA customer) without fees and I got the exact daily bank rate of exchange (which was higher than what was being given when you exchanged USD/peso).

Again my experience is Mexico not Honduras, but swiping debit cards for individual purchases wasn't really available.

I think Travelers Checks are a good idea to have at least for emergency situations and as one more possible option of getting cash.