How to Survive:
Credit Crunch and Family Finances
While the world is immersed
in the developing credit crunch, many people are losing their jobs on top of it
all. Here are five ways to survive credit crunch obstacles which could possibly
result in many families losing everything they own. If
you are scared by the worsening developments of the worldwide credit crunch, you
have every right to those fears. Almost everyone knows at least one family close
by that has lost their home to foreclosure, and probably at least a couple more
who are barely hanging onto their homes. As prices rise on just about everything
a family needs to survive and credit cards become harder to come by and even harder
to pay off, every family needs to think about ways to survive credit crunch obstacles
which could threaten everything they own in the near future. 1.
Cut up your credit cards and erase all traces of them on the internet. Part of
the problem that led to the credit crunch is the massive number of people living
far above their actual incomes through credit cards. Taking out a small loan or
pulling out a card for goods and services that you otherwise would not be able
to afford is not a good idea if you want to survive credit crunch setbacks that
are on their way. The best way to come out of this with
a stable financial record is to start living on your actual income, no matter
what you have to sacrifice. You want to keep the lines of credit that you do have
right now open, but reduce the balances as much as possible. If you can stop using
them altogether and get them paid off you can save your credit at a time many
people are finding theirs destroyed. If you cannot survive
without your credit cards limit your spending to what you can reasonably pay off
entirely at the end of each month. This will keep you from running up a high balance
which could spark a reduction in your credit limits during a credit crunch. Not
being able to survive credit crunch problems without your cards is a sign you
are living beyond your means and should pay close attention to the following tips.
2. Cut off any excess services that are not absolutely
essential to survive credit crunch circumstances. Get creative and you will find
ways to provide your family with what they need at a much lower cost. For example,
many families are cutting off their home phone lines and just using cell phones.
Depending on your cell phone service and how often you use your phones, it may
be cheaper for you to cut off cell phones and just have a home phone. One way
or the other, most families do not need both cell phones and a landline. Other
expenses that you could cut out until financial situations perk up are gym memberships
and premium television channels. Exercise at home or buy a few workout DVDs and
save money on gym dues and gas driving back and forth. If you are facing serious
financial difficulties it is important to make these sacrifices right away to
limit the damage long term. Any of these sacrifices are
well worth the effort in the long run if you can survive credit crunch tragedies
such as home foreclosure and huge hits to your credit report that could prevent
you from future lines of credit even when the economy does recover.
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