REPORT #1684
"Every time you open your wallet you should think first, is this a want or is this a need, and if it's not a need, then maybe I shouldn't get it."
Mechel Glass
Dir. Of Credit Education
Consumer Credit Counseling Service of Atlanta
RESISTING RECESSION
It's no secret that the economy has seen its better days. But that doesn't mean you need to lose money. Knowing how to manage the money you have and which kind of cut backs will benefit you most will keep you afloat even when the rest of the economy is going under.
WHAT YOU CAN DO: Iowa State University professor and personal finance expert Tahira Hira was recently appointed by President Bush to serve on the President's Advisory Council on Financial Literacy. She has 5 tips that she believes can help any family brace for recession.
1. Take time to distinguish between your wants and needs. Hira says for the time being focus on needs.
2. Prioritize your bills and/or payments due. Keeping house, car and utility payments current are the most important according to Hira.
3. Develop a plan for your spending. Don't just spend … Hira says have a plan in place so when needs arise they can be met.
4. Eliminate or minimize the use of credit cards. Hira advises to only charge items for which there's money assigned in your spending plan.
5. Talk about money situations with both your family members and your lenders. One person can't follow a plan alone. Hira says in order for the whole family to be successful, everyone must be on the same page.
CREDIT CARDS: Financial experts agree, there has never been a better time to get rid of your credit card debt. Banks fear upcoming loss of payment because of expected job losses and this is causing credit card interest rates to skyrocket. Getting rid of credit card dependency can be difficult. It's easy to pay minimum payments for years, but that may not be the smartest thing to do. Get on the road to debt freedom by creating a budget. The first spending area that's easy to cut back on is entertainment and frivolous expenses. Also, get rid of the "keeping up with the Joneses" mentality. If you're having trouble paying down credit cards in big chunks try paying weekly. Your credit card company will accept money any time you want to send it.
SMART WOMAN CONTACT:
Mechel Glass
Consumer Credit Counseling Services of Atlanta
mechel.glass@cccsinc.org
