10 Ways To Survive An Economic Meltdown
by John S
1) Talk About It
It is easy just to bottle your emotions up and think your financial problems will blow with the wind. Don't let this eat at you, talk it over with your loved ones or family and work out some strategies on how you can resolve some of your problems.
You will be surprised at how much this will help both strategically and psychologically. The big mistake people make is to stay quiet about these things hoping they will just go away. It can cost your marriage or relationship in the end. So learn to become a better communicator.
2) Create A Household Budget
Many families fail to do this, and wonder why they end up in serious trouble down the track. Each month work out your budget and credit card statements. Workout how much money is coming in and where all the money in the last month went.
After putting pen to paper you will be surprised at your findings. You will be able to note small changes equal's big savings in the grands scheme of things.
3) Pay Off Your Debts
As the credit crisis continues to add pressure to many families you need to realize that any debt over your head is going to eat away at you both mentally and financially speaking.
If you have a good amount of cash in your savings, use it to pay off large debts that you own. (Credit cards, bills, loans, etc) Remember the more you pay now, the less you have to pay as the years wear on. Paying off your larger debts first is very wise.
4) Throw Out Those Credit Cards
This is part of the problem to what has been going on for so long. People living off credit. In other words people paying for things with money they don't have in the first place.
If this sounds like you, grab the scissors and hack away at your cards and throw them out. It will stop the urge to pay for things without cash.
5) Choose A Good Credit Card
If you are a person that likes to have a credit card in case of an emergency or for online purchases, investigate all your options before you obtain one.
Many people get caught out on the interest free option plans. There are many hidden catches and fees these companies wont reveal to you, so be wary of this.
6) No Credit Cards, Use Debit Cards
These work just like a credit card only you have to go out and put money on credit first to use later on. It means you always know the limits you have or how much you can spend.
This will keep you more in control when it comes to making purchases both online or offline. Many people in the past refrained for using these, as there were many restrictions and options. Today you will find that they are accepted worldwide and have almost no restrictions attached.
7) Negotiate A Better Mortgage Rate
Yes! This is not some strange myth. If you are a valued customer at your bank, and have a good relationship with your manager, then you have every right in the world to sit down with them and negotiate a better deal.
Ever heard the saying, 'If you don't ask, then you don't get!' Any lower fees, or rates you are going to get will be money in your pocket and not theirs. So make every effort to organize an appointment with your manager and see what you both can come up with.
8) Passes On Interest Rate Falls
You must realize that if interest rates fall these are not automatically passed on to your loans, and in this case you have to ask for it. Keep a constant watch on the rate moments and act accordingly.
9) Make Use Of High Monthly Repayments
Keep your monthly payments on your mortgage and loans to the highest level when interest rates are falling. You will then pay off your debts a lot faster than normal. You will also use the rates to your advantage.
The quicker you pay off your loans, the less money you will lose when the entire loan is payed off.
10) Get Fixed Term Home Loans If Possible
After recent rate cuts there are some people on higher fixed rates home loans, which were agreed upon before the credit crisis. It is worthwhile thinking about getting out of these fixed percentage loans, but with this comes with a warning. The banks will charge you some sort of 'break free' fee but this will depend on when you signed up for you loan and how much is left.