Huge billion dollar bailout plans in the works, a credit crisis, a looming credit card debt crisis, state budgetary issues and an imminent government policy of bailout and spend means a recession is looming. It is only a matter of time until the current credit and financial crisis leads to a full blown recession, below we will outline the steps to help recession proof your personal finances.
Inflation and Recession is Imminent. I am no longer on the fence on the matter, the economic statistics are beginning to roll in and earnings season on wall street has just begun. Consumer spending trends oft follow corporate spending trends and right now the strategy of the moment is defensive. With the inevitable recession and inflation in our near future, if not here now, here is the top 10 list of ways to survive the coming recession.
1. Downsize: There is no way around this one folks, I know we hate to hear it, but to recession proof your personal finances it is time to spend less and attempt to earn more.
2. Create an emergency fund: Do what you can to increase your liquidity. Set up an emergency savings fund of cash that can be drawn upon in tough times if you have not already done so.
3. Hedge your portfolio with Gold: Consider moving a portion of your assets into gold. Not gold stocks mind you, but actual gold as a hedge against inflationary government bailout policies.
4. Pay down your high interest debt: Take a lesson from the failing financial institutions and pay off your high burden high interest credit cards or personal loans, or at least stop adding to them immediately to recession proof your finances.
5. Balance transfer to ease interest burden: Consider a balance transfer on your outstanding credit card debt and take advantage of 0% for a period promotional offers to ease the interest burden and get ahead.
6. Get Emergency Credit Now: If you are lucky enough to have equity in your home or real assets, consider getting a line of credit against the asset now, and leave it untouched and available for hard times. Credit will be tougher to get with new future regulations and policy.
All is not lost, and there is much that is bright on the horizon. The US is a resilient nation, with a generous hardworking and industrious people. Preparedness is the name of the day to survive the coming recession. Spend the time to recession proof your personal finances now, your balance sheet will thank you for it.
By: Ariel Pryor
About the Author:
Ariel Pryor is a credit expert who counsels and helps people with Really Bad Credit to get the loans and credit cards and begin rebuilding their credit. If you found this article helpful, let me help you save money and time finding your next Bad Credit Loans
