TIPS ON SURVIVING AN ECONOMIC DEPRESSION

The devastating economic situation in the leading economy in the world has people talking of an economic recession worldwide.

Stock markets have taken a dive not only in the United States of America but in just about every country in the world. Layoffs of working men and women all over the United States have become a part of our daily news. Those who are working, are constantly worried about their keeping their jobs.

Economic advisors countrywide keep up their lectures on a worsening economy on news channels constantly, reminding people of the economic mess they are living in.

So what can the average person do about this?

Stop worrying, think smartly and prepare! Worry can only lead to additional problems with not only your financial wellbeing but also your health.

SURVIIVNG ECONOMIC RECESSION

Stop worrying about a recession for a start. The chances are the recession may not even directly affect you or your family. On the other hand worry can really take a toll on one’s health and wellbeing. The more you worry the less you can prepare or make wise intelligent decisions to prepare for your future. Decisions often made under worry and stress usually turn out to be the wrong decisions.

Stock markets are taking a beating all over the world. Money markets react to news and the news currently is not good. If you own stocks then don’t panic.

Consider the following:

Just about all stocks are going down.  Chances are that you may own stocks that are down due to market trends and not because of performance.

Unless you need the money from your stocks don’t sell under pressure and worry that your stocks may one day become worthless. Your portfolio may be down but the losses are so far only on paper and until you sell off your stocks you have a pretty good chance the value of your stocks may come back up.

For each stock sold on the market, there has to be someone who is buying that stock. Remember the stock buying principle that to make money buy low and sell high.

If you own dividend paying stocks then think hard before selling them off in a depressed stock market.  For those who have money this may be one of the best times to buy stocks as there are some great blue chip stocks out there available at bargain prices as investors panic and sell them off.

Credit card debt carries one of the highest interest rates allowed by law. Don’t buy things on credit cards unless you can pay off your credit card balances without incurring more interest.

 If you find yourself making minimum required payments on your credit cards you are already on the track to economic disaster.

Never take a cash advance using your credit card. Think about 20 to 25 percent interest payment from the day you get a cash advance. There are no grace periods for cash advances on credit cards.

  If your credit card payments are out of reach then consider credit counseling and lower your interest payments by seeking help to reconsolidate your credit card debts to one payment at a manageable interest rate.