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| What Do I Do Now? |
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With economic worries mounting nationwide, what can you do to make sure you and your family are protected? News10's Dana Howard talked to the experts and has their tips for SURVIVING THE ECONOMY. |
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Pt. 1 - Recession Proof
Thursday, January 31, 2008
The word recession conjures images of gloom and doom. But what exactly is a recession -- and is the U.S. in the middle of one? With an uncertain economic future, experts offer advice of what you should do to make yourself recession-proof. |
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Pt. 2 - Credit Crunch
Friday, February 1, 2008
What do you do if you suddenly find yourself drowning in a sea of credit card debt? Financial experts have suggestions for getting yourself back on dry land -- or assuring you don't find yourself there in the first place. |
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Pt. 3 - Unemployment
Thursday, February 7, 2008
Your biggest recession threat? -- the chance of unemployment. If the unthinkable happens, employment experts have some tips for finding work when it seems like everyone is battling for the same few jobs. |
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Pt. 4 - Bankruptcy
Friday, February 8, 2008
It's a word that can strike fear into anyone -- bankruptcy. In tough economic times, more Americans may have to face the prospect of declaring bankruptcy. But experts say it doesn't have to be the end of your world. |
| What is a recession? |
A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
A recession begins just after the economy reaches a peak of activity and ends as the economy reaches its trough. Between trough and peak, the economy is in an expansion. Expansion is the normal state of the economy; most recessions are brief and they have been rare in recent decades.
-- National Bureau of Economic Research
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How Do I Avoid the Credit Crunch? |
1. Cut Your Budget
It's never fun, but cutting back on entertainment and food expenses -- not to mention that cell phone -- can often hack nearly $200 or more a month from the average budget. And don't forget to check into your auto insurance -- you can save money with a lower cost policy.
2. Contact a Legitimate Consumer Credit Counseling Service
They can help you set up a reasonable debt management plan.
3. Talk Directly with Your Credit Card Company
Be sure to ask for the company's debt management department. They can make accomodations that the average customer service rep can't. |
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| Get Me a Job! |
 What do you do when you're downsized out of your current employer? Experts say there are five simple steps that could help you land on your feet in a new job.
1. Have a Clean Resume
No wild colors or fonts, keep it simple. Avoid personal info, i.e, hobbies, Social Security numbers, etc. And above all else -- no typos!
2. Follow Up with a Call
Don't assume your resume is all you need. Always follow up with a call to the appropriate company contact.
3. Sign Up with Online Networks
Being familiar with LinkedIn, Craig's List or Facebook can help you contact current company employees and develop important relationships.
4. Check Out a Company's Web Site
Companies don't always have the money to advertise their job openings. It can also give you some valuable insight into how the company works.
5. More Education
 Finishing a college degree or even specialized extra training in your field can make all the difference against stiff competition.
6. Interview Do's and Don'ts
Once you get your foot in the door, be smart. Turn off your cell phone, lose the bluetooth earpiece and no gum-chewing. DO ask questions about the company -- it shows you've done your homework. And feel free to comment on what you like about the organization -- everyone likes a little praise.
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| It Can Be Done! |
| If you think you can't save a bundle out of your current household budget, think again. This is just one example of how experts say a normal family can make minor budget cuts and save hundreds of dollars a month on some of the usual monthly expenses. |
Items |
Current Monthly Cost |
% Cut |
Monthly Savings |
Food |
$600 |
20% |
$120.00 |
Water |
$165 |
0% |
$0.00 |
Electricity |
$150 |
5% |
$7.50 |
Gas |
$80 |
5% |
$4.00 |
Transportation |
$400 |
5% |
$20.00 |
Cable |
$100 |
40% |
$40.00 |
Radio |
$35 |
100% |
$35.00 |
Cell phone |
$84 |
40% |
$33.00 |
Home phone |
$45 |
100% |
$45.00 |
Internet service |
$40 |
100% |
$40.00 |
Dining out |
$150 |
50% |
$75.00 |
Insurance - car |
$200 |
10% |
$20.00 |
Insurance - home |
$100 |
10% |
$10.00 |
Total |
$2,149 |
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$449.50/month |
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| Bankruptcy: What to Watch For, What to Expect |
| You dread it, you fight to avoid it -- but sometimes, bankruptcy can be your only option out of financial ruin. Here are some of the signposts that you may need to consider bankruptcy and some of the implications you may expect if you file. |
| Signposts: |
Implications: |
1. Sky-High Interest Rates
Once a late or missed payment pushes one of your lenders to raise your interest rate, the rest of your cards and debts will soon follow -- call it the "Universal Default" principle. |
1. No More Living Beyond Your Means
You'll likely have no choice but to change how you get through your month money-wise. Remember -- you won't have credit cards to fall back on to supplement monthly cash flow issues. |
2.Credit Card Debt
If your unsecured credit card debt is at or above your annual salary, that's a strong indicator or trouble. Usually, anything over $30,000 should demand some attention. |
2. No Immediate Credit
In addition to suspending your current cards, no lender is likely to approve you for any new credit cards or loans for anywhere from six to 12 months. |
3. Owing More Than Your Home is Worth
Especially if you have a second mortgage. A process in bankruptcy called stripping may cancel that second loan altogether. |
3. Separation or Divorce
It's a fact -- the emotional stress of bankruptcy coupled with feelings of embarassment or failure can often cause substantial marriage and relationship problems. |
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2.
Have you had one or more late credit card, house or car payments in the past six months?
