[FlamingChick]

I'm not really sure if people are actually calling this financial situation that we are in here in the U.S. a recession, but it's getting more and more concerning by the day. With the mortgage crisis causing people to lose their homes and people being laid off every day, who knows what will happen next. Today, Circuit City announced that they would be closing all of their stores, leaving 30,000 people without jobs. This hits pretty close to home since they are based in Richmond. Yesterday I only got to read a small portion of an article in Town and Country Magazine with Suze Orman giving tips on how to brace yourself for the recession. Suze said that she thinks this state we are in now will last at least until 2013 (I hope not!). I didn't get through the entire article, but some of the tips she gave were:

1. Pay off credit card debt, and until you do, make sure that you don't miss a single payment and make sure that all payments are on time. A lot of Credit Card companies are jacking up interest rates, lowering credit limits, and canceling accounts when folks are late paying.
2. Don't borrow against your 401k or other retirement plans, since those funds are protected by bankruptcy.
3. If you find that you cant afford your mortgage anymore, it's best to try to sell instead of letting your home go into foreclosure.

Those are the only 3 I remember, but I'd like to know, What are you doing personally to brace yourself for the recession or what tips have you heard or read about that you think will be beneficial to you financially in 2009?

[whmatthews]

I'm literally putting part of mine and my wife's paycheck in a paint bucket in the spare room.

[olldflame]

Actually, for many if not most of the home owners currently faced with foreclosure, selling their house is not a solution, even if a buyer can be found. Because people financed at or near 100% of their homes inflated value, now that the bubble has burst, they are faced with "negative equity". Even if they sell the house for the current fair market value, they will not have enough to pay off the mortgage. Then if they find a way to come up with the difference, that will no doubt put them deeper in debt, and they will still need a place to live.

[AZjonz]

Built a house at an extremely low $ per sq foot rate. It's almost obscene. The comps on my house are way better than the houses being built after mine. We'll see if it holds.

The house is located in my new home town featured on Nightline as the last boomtown in America.

If your in a good cash situation - now's a good (no, great) time to take a position on an investment - Long term though.

[RagingTireFire]

I'm literally putting part of mine and my wife's paycheck in a paint bucket in the spare room.

I'm sure the bucket is grateful.

[mrmacphisto]

It seems weird to discuss bracing for something that arrived months ago.

[Cider Jim]

I noticed an interesting marketing strategy by a local car company that was advertising on TV yesterday. Their slogan was:

"Lose your job, return the car."

That certainly takes the pressure off of deciding whether to buy a big SUV, doesn't it?

[Ed Dantes]

I know everyone says there is a recession, but I don't plan on participating.

[PAmedic]

I noticed an interesting marketing strategy by a local car company that was advertising on TV yesterday. Their slogan was:

"Lose your job, return the car."

That certainly takes the pressure off of deciding whether to buy a big SUV, doesn't it?

Brought to you by Hyundai- its a national marketing campaign they've started

http://money.cnn.com/2009/01/05/autos/h ... /index.htm

either way, you're still buying a Hyundai

[Sly Fox]

Down here in Houston we were sheltered from the downturn over the past two years until the bottom dropped out on crude this fall. My business has dropped dramatically. We learned how to live lean four years ago following the double layoff of my Mrs. Sly & Yours Truly. We've already cut the fat and now we're stretching dollars in case crude doesn't bounce back up like everyone anticipates. Times like these force creativity upon us.

[TDDance234]

I recently read Dave Ramsey's latest book...and it wasn't anything he wrote that blew me away. It was all of the stories of where people were 30k in Credit Card debt. I can't imagine being that much in debt with just credit cards.

[Sly Fox]

I flipped by Dave on FBN the other night and a guy was on there talking about how he had just discovered that his wife had hidden $150k in credit card debt from him.



Making it even crazier is that they had a combined family income of $80k and were living in a $350k home with a $180k lakehouse. The guy was asking for some advice.



It is amazing the stories you hear on his radio & TV shows.

He's at Toyota Center next week and I hear it is sold out or close to it. That alone should tell you where are economy is today.

[jcmanson]

Dave is an amazing man, it's true that God sends certain men to certain places at certain times. JF was one of these men, and I believe Dave is as well. I'm working my way through his "My Total Money Makeover" now.

[BJWilliams]

I recently read Dave Ramsey's latest book...and it wasn't anything he wrote that blew me away. It was all of the stories of where people were 30k in Credit Card debt. I can't imagine being that much in debt with just credit cards.

Its stories like that that are teh major reason why Ive avoided credit cards in general for so long. I am planning to finally get one this year but for the sole reason of establishing a credit history since i will need that to get my own car and my own house

[jcmanson]

I recently read Dave Ramsey's latest book...and it wasn't anything he wrote that blew me away. It was all of the stories of where people were 30k in Credit Card debt. I can't imagine being that much in debt with just credit cards.

Its stories like that that are teh major reason why Ive avoided credit cards in general for so long. I am planning to finally get one this year but for the sole reason of establishing a credit history since i will need that to get my own car and my own house

Beej read the above mentioned book I mentioned before you take on any debt. Trust me, and that goes for anyone else.

[01LUGrad]

As long as people keep procreating, and I stay in the same school system I have been in for 8 years, I'm good to go. I might not get a raise next year, but it is a lot better than several of my friends who are searching for jobs that don't exist. I'm glad Obama will save us all starting Tuesday at noon. (I heard that last part while watching a campaign rally in October.)

[LUconn]

At first I was going to call Suze a wack job for thinking this will be going until 2013 but with the way the government keeps trying to "help", I agree it'll drag out.

[thepostman]

no way man..Obama is going to pay everybody's mortgages and fill up our gas tanks!!!

come on...remember this!!

[4everfsu]

I just paid off my credit card last month, only bill I have other then utilities is a loan on land I bought next to my house. It is $300 plus a month. Everything else I own is paid off.

[Sly Fox]

And you are sleeping at night. That's a good thing.

I would be in a panic right now based on my work situation if we hadn't had our financial house in order.

[flamesbball84]

I recently read Dave Ramsey's latest book...and it wasn't anything he wrote that blew me away. It was all of the stories of where people were 30k in Credit Card debt. I can't imagine being that much in debt with just credit cards.

Its stories like that that are teh major reason why Ive avoided credit cards in general for so long. I am planning to finally get one this year but for the sole reason of establishing a credit history since i will need that to get my own car and my own house

If you don't think you can trust yourself with a credit card, which is the way you make it sound, then you shouldn't be getting one. There are other more viable ways to build a credit history. you don't have to have good individual credit to be able to get a car loan. if no one is willing to give you a loan straight up, you can always get someone to co-sign with you, most likely parents or a spouse (if you have one by then) would be the only ones willing to do it, or unless you have a friend that really trusts you, because if you don't make the payments on it, then the cosigner is responsible for picking up the bill...

[ATrain]

I have a Starbucks Duetto Visa that I use solely at Starbucks, just to buy Starbucks coffee (that I now buy and brew at home since I no longer live in walking distance of one). I put about $24 a month on it and pay it off easy...and my credit score is through the roof

[LUconn]

I recently read Dave Ramsey's latest book...and it wasn't anything he wrote that blew me away. It was all of the stories of where people were 30k in Credit Card debt. I can't imagine being that much in debt with just credit cards.

Its stories like that that are teh major reason why Ive avoided credit cards in general for so long. I am planning to finally get one this year but for the sole reason of establishing a credit history since i will need that to get my own car and my own house

If you don't think you can trust yourself with a credit card, which is the way you make it sound, then you shouldn't be getting one. There are other more viable ways to build a credit history. you don't have to have good individual credit to be able to get a car loan. if no one is willing to give you a loan straight up, you can always get someone to co-sign with you, most likely parents or a spouse (if you have one by then) would be the only ones willing to do it, or unless you have a friend that really trusts you, because if you don't make the payments on it, then the cosigner is responsible for picking up the bill...

Credit available to you is a big part of your credit score. So a credit card is still needed.

[SumItUp]

I don't have personal debt, but my wife and I are tightening the budget. We are limiting our visits to restaurants and eliminating unnecessary purchases. I'm doubling down on business debt payments, doubling down on house payments, saving money and looking for buying opportunities. I will not be buying, however, until the general economy displays justification for optimism.

Advice for anyone that is uncertain about their job future (If you don't sign your own checks, this is you). Live frugally, pay off debt, save your money. BE EXTREME! This is not going to turn around quickly. If you ignore the warning signs, chances are good that you will regret it.


BJ, listen to the advice from 84. You don't need a credit card.

[TDDance234]

...but if you're going to...use it to pay your cell phone bill and leave it in the freezer. You pay your bill every month, build credit and before making any big purchases, you have to thaw your credit card out.