Terry Savage
So as the Federal Reserve and Congress try to rescue our economy from recession, their options will be limited by the fact that we -- and they -- are already so far in debt.
How to Survive a Recession
You're going to have to take some actions to save yourself and your family from the consequences of recession. And even it it's a mild recession, you'll be better off in the long run if you act on these Terry's Tips: 1. Face Your Finances: Pile up those credit card bills and make a list of what you owe and the minimum monthly payments. Then total up your monthly expenses. Figure out where you stand, and how you could withstand the loss of a job, or overtime. Knowledge is power. If there's a gap in your finances, you have to fill it, and there are only two ways: Earn more or spend less! You can't borrow any more. 2. Get More Work: Start looking for an extra or part-time job now before there are a lot more people out of work. Maybe it won't be in your line of business; maybe you'll earn extra money as a waiter, waitress or sales clerk. Or have your spouse or teenage kids consider getting a job. Then use that money toward paying down your debt. 3. Pay Down Debt: Floating rate debt will bury you. It's not the original purchases you charged, but the mounting interest that crushes your future. If you double the minimum monthly payment on your credit card and keep making that same payment every month, and don't charge a penny more, you'll be out of debt in less than three years. 4. Deal With Your Mortgage: If you have a mortgage, contact your lender or mortgage servicing company if you even think you'll have problems. If you have an adjustable rate loan, quickly shop around for a fixed rate loan
while you still have a job. If you have an FHA loan and are not behind on your payments, call 1-800-CALL-FHA for a new program they have to refinance you out of an adjustable rate loan.
5. Stop Shopping! Start Saving!Yes, I know this would guarantee a recession if everyone did it, but I'm talking to you. And you must stop shopping for anything but necessities, and start saving cash for a rainy day, because the hurricane warnings are upon us.
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In Too Deep? Pick Up the Phone
Finally, if you feel you're in over your head, call Consumer Credit Counseling Services at 1-800-388-2227. That telephone number connects you to the nearest local agency of this national non-profit organization. You don't have to be buried in debt to contact them to help organize your spending and debt. You can even get actionable help on the phone. This counseling doesn't go on your credit report, and it could help you avoid a financial disaster. But if you're truly buried or if you are one of the approximate 801,000 Americans who declared bankruptcy in 2007, or the many more who will file this year, Consumer Credit Counseling Services also have a debt management program.
Get Ready for a Recession -- Diversify |
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