The big 'R' word is in all the headlines these days, while economists and pundits disagree over whether we're already in a recession, on the brink, or able to avoid one. But a recession is not about words or opinions or statistics. It's about your life and your personal finances.
What's a Recession?The technical definition of a recession is "two consecutive
Cramer: We Need Rates at 1.5%
How to Survive a RecessionYou'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
In Too Deep? Pick Up the PhoneFinally, 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
Get Ready for a Recession -- Diversify