The jobless rate would have jumped to 10.4%, if the newest report had included the 661,000 who simply abandoned the work force. Foreclosures continue to rise, and some economists are even predicting a second Great Depression. So what can those hardest hit do to survive?
Creative financing has taken on a whole new meaning on the personal stage. And while there will always be people who say that the doom and gloom economic forecasts come straight from the boogy man, you have to remember that they are the ones with jobs and health insurance.
Well known financial guru, Dave Ramsey, has been preaching about the evils of debt for decades. One of the best ways to survive a shrinking economy is to get rid of it.
“Personal finance is 80% behavior. You need to cut out habits that make you spend more. You do not build wealth with credit cards. Use common sense.
When you play with a multi-billion dollar industry and you think you’re going to win at their game, you are naive. You cannot beat the credit card companies.”
But they will beat you if you let them.
Too many of us have fallen into the trap of plastic money. Yet, if you add up your true expenses, like; rent or mortgage, food, clothing, electricity and other basics – then subtract how much you pay toward your credit card bills each month, you might find that without them, life just got easier.
“Myth: Aren’t there positive uses of a credit card? Like rebates and airline miles?
Truth: Responsible use of a credit card does not exist. Credit card debt is a major problem in America,” according to Ramsey.
One of the biggest adjustments people have to make when they lose their job involves giving up luxuries. That can have a different meaning to different people. For some it means substituting Coach for Louis Vuitton. For others it means eating once a day instead of three times a day – or not at all.
“Economist David Levy has created a name for the anomaly we are living in. He calls it the “New Abnormal.” At the heart of his theory is an America that will spend the next 10 years living in an era of chronically high unemployment and shrinking income.”
You might be surprised at what you can live without. And a good place to start – is trying it without a credit card. Living on less is not easy, but it might not hurt as much as you thought either. Whatever it takes to survive.
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