Economic worries and concerns impact anyone that is paying attention and for those of us that have a bit of awareness and understanding about how the consumer credit and debt world works, it makes it even more frightening when looking into the crystal ball.
I avoid debt, but I have some. But it is not the debt that scares me right now, it is the potential loss of income if our economic system tanks. If it does, forget about servicing your debt, all bets are off at that point, your focus will shift from protecting your credit report to just making it through day-to-day.
Sure the headlines sent out by the president and politicians make an eminent economic collapse sound likely and those warnings can be easy to dismiss as hyper alarmist babble, but should I? Should you?
On a daily basis I have a very positive outlook about the future. I enjoy life and the experiences it brings. I really enjoy helping people. What I don’t enjoy is seeing people in pain and suffering, starting with myself and my family.
95% of Americans and American families are going to face getting royally screwed if the economic collapse happens. The poor, we’ll they are already screwed so they are in the bucket waiting for the rest of us already.
For those that think that nothing can happen to them, you might want to evaluate that again.
If the economy declines a number of dominos start to fall with each one putting more and more pressure on my life and your life as they tumble.
If we look at the broader picture, the best thing for you to do is spend, spend, spend and run up debt. Debt equals business orders, orders equal production, production equals employment, employment equals income and income leads to spending. It’s a pretty simple closed loop system.
But what is best for you as an individual right now is not what is best for the economy. Some may say that it is damn near unpatriotic. What is best for us individually is to save, save, save, instead of spend, spend, spend. By putting money in a savings account right now we will be able to put cash in the bank to help us in case we accidently lose our jobs or get our wages cut.
If your hours get cut, your management position gets eliminated or there is any loss of income, your previous obligations don’t care. Your bank will still want the mortgage payment, the auto company is still looking for the car payment and as for the utility companies, not only are they looking for their money but they are planning to raise you rates at the same time.
When faced with an economic uncertainty the best thing you and I can do is watch how we spend every single dollar and ask ourselves if what this is that I am about to purchase really necessary? If it is not, don’t buy it. I’m not. And let me be clear that I do understand that my actions are not good for the economy at large, but they are good for my family at large.
If you spend for what is best for the economy and then find yourself unable to make your payments, you don’t get a badge or bonus points. Instead you are left with not all that many rights and creditors have the power to sue you, take stuff like your home and car, and the stress and pain are intense.
I lived through bankruptcy once and once is good enough for me. I never want to go through that again and that is what leads me to share this article and advice with you. I don’t want to see you live through the unintended pain of financial failure. It is a lesson best avoided.
My advice for today, stop spending and hoard your cash to protect yourself from too much damage if this economy tanks. It can happen ‘fast and furious’ and that concept makes for a better movie than my or your daily reality.