January 1,2009
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Economic Self-Recovery, Pt.1 –
– Here's what you can do.National recovery is expected to take a long time. Many people can't wait because they are already down to the wire. The good news is that, on the personal level, there is some hope for, at least, a subsistence-level economic recovery. For most, this is achievable in small steps that will, ultimately, lead to a wealthier and happier life. When things are bad and getting worse, it's usually best to control the ‘bleeding' first. This almost always involves paying bills that are consuming your ability to get out of the hole. High interest is one of the biggest factors and, often times, credit cards are involved. When the cash is all dried up, credit cards may be the only primary form of liquidity left. (Selling your home and your car is usually not the best route.) You still need food, shelter and gasoline in order to dig out of the hole. For many, credit cards may be one of the few ways out. (Credit cards can also make things worse, so use extra caution here.)
A little discipline now can reap great rewards in the future, while a little mis-use can reap great carnage. Credit card dept debt is never going to be the answer, but credit card liquidity can be the ‘grease' that allows the gears to get moving again. This means that there must be a well-defined exit strategy, before taking on credit card debt.
In order to stop the bleeding (of your financial resources being sapped away), you should target the leading causes. High interest and steep payments are usually high on the list. Handled correctly, credit cards can usually resolve both of these crushing burdens. Seek to acquire a low-interest (0%, if possible) card account. You may have to shore up your credit score first.