By US Daily Review Staff.
InCharge Debt Solutions (“InCharge”), a nonprofit organization devoted to helping consumers resolve their debt problems, has a five-step strategy for consumers to follow regardless of whether the American economy goes up or down. According to some estimates, there is still a 40% chance of a recession in 2012 and the jobless rate could rise as high as 9.5%.
“Whatever happens this year, history has proven that another recession will come, maybe not in the next six months, but in the future and being ready for it is crucial,” said InCharge President Etta Money. “It is prudent to be prepared for every contingency, and planning and financial literacy education are two very important missions of InCharge Debt Solutions. Hopefully, the economy will continue to improve, but if it doesn’t, we all need to have a plan for whatever the financial markets bring.”
Current indicators point to the possibility that 2012 GDP growth rates could be less than 1% and, when combined with the financial problems being faced by Europeans, the American economy, our job market, and credit availability could be negatively affected.
InCharge recommends that every consumer take these five steps, now, before any of these negative forecasts come true:
1 – Reduce your debt – paying for debt instead of life’s necessities (food, shelter, utilities) is counterproductive, particularly during a recession. Take steps to pay down your debt as much as possible before another downturn.
2 – Create an emergency fund – even if you only have a small amount of “extra” money every time you receive income, put as much as you can away.
3 – Cut your expenses – it is amazing how many things you can save on when you really put your mind to it. Cable, insurances, entertainment, there are always ways to cut.
4 – Be a better employee – work harder, do more at work, become more visible and more valuable to your employer. Who knows, you may get a raise or a bonus!
5 – Do a financial inventory – free credit counseling from a nonprofit like InCharge Debt Solutions is a great way to have a certified professional evaluate your financial situation, budget, and spending habits, and develop a strategy to help you deal with whatever the American economy throws at you.