Practical Survival Tips for Recession

Because of the recent economic crisis, many people have found themselves facing financial problems that they never expected such as unemployment, foreclosure, failed business, reduced income, etc. What can you do to cope with economic adversity? In this article, let’s talk about practical tips on how to survive tough times.

Prepare for Survival

While the situation is well, prepare for the worst. According to financial advisors, consumers must build a personal savings fund that would be sufficient to support them and their families for at least 6 months or longer. This will provide some cushion in case an unexpected event blows such as losing a job or business failure.

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Are you currently employed? Or are you running a small business? If so, then make use of every possible opportunity for you to build your savings. Invest on health insurance and other insurance policies. Being prepared to face the crisis is the best way to lessen the damage.

Seek The Way Out

What can you if you get laid off from your company? Don’t waste time. Begin employment search immediately. If you have health insurance from your previous job, you can enjoy continuous coverage for up to a certain period even though you are out of the company. It’s very important for you to be able to acquire a new insurance coverage before the old one expires.

What if there are no available positions for you? Try to find part time projects or short term jobs as you wait for a better job opportunity to open. This way, you can support your day-to-day needs without having to rely much on your personal savings.

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Speak with Your Creditors

If your financial situation has changed, don’t forget about your creditors. The best thing to do is to talk to them and let them know about your situation. You may have to skip the next few months of your payments while you search for a new job. In this case, you can request a creditor if modifications can be made with your present repayment terms. Most creditors would gladly make adjustments to help a borrower keep up with payments and avoid default.

If you will not be able to submit your payment on time, call up your creditor and politely request if your due date can be extended and if the late penalty can be waived. You may also request your creditor not to report your payment as late to protect your credit score. If you can talk to your creditor in advance, you are most likely to be given the consideration you ask.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

1 Comment
  1. Talking to your creditors, as you say, can be really useful.

    Far too many people just presume the worst, and refuse to speak to anyone. Sometimes thoug, the best way is to just consolidate your loans into a single payment. It just seems easier somehow and it’s certainly easier to create a budget and stick to it that way!

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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