surviving a recession

[mdcar1]

I don't wish to start an argument about whether or not we are in a recession or not. I do want to start a dialog about how to survive one? What should we be doing or not doing?

[Bernardd]

I don't wish to start an argument about whether or not we are in a recession or not. I do want to start a dialog about how to survive one? What should we be doing or not doing?

Great idea.

I'll start
#1 Pay off all your credit card debt.

[icebear]

Great idea.

I'll start
#1 Pay off all your credit card debt.
yep, that way what little $ you have left is legally yours... i imagine the next step is to get the mortgage paid off ASAP so if things get tough you at least have your house.....

[saulteux]

If you can pay of your mortgage, do it.

Next biggest thing I can think of, from a "survivalist" point of view, is to have a skill that is in demand.

[Rondaben]

I would disagree here, though the reasons why will depend upon the laws in the state that you live.

It is too late to pay off the debts that you currently have--particularly credit card debts. You need to look at the different types of debt that you have through a particularly pragmatic view.

Credit cards, store credit, etc. are UNSECURED...that is, they are not guaranteed by the goods that you used to purchase with those lines of credit. In the event of a default, there is nothing that those companies have for recourse. This may vary according to your state (they may be able to garnish wages or place leins on tangible property in your state, learn if they can or not). Unsecured debt should be payed last, if at all in a severe recession/depression.

Secured credit (i.e. Mortgages/Automobiles, etc. that the lendor can sieze if payments stop) would receive priority payment. In a recession/depression the most important assets are those that are paid off and that you own outright. Look at your secured debt. Can you realistically pay those things off in the next 3-6 months? If not, paying extra on them now would be wasting your money because those assets will be recalled by the lender as soon as you default regardless of your equity. If you can pay them off in that time frame then do so.

Finally, essentials. Food/water/arrangement for shelter, etc. This MUST have the first priority. You should use available cash to secure these resources first, and you should do so as soon as possible. The dollar at the moment is beginning its final nosedive. As it's value starts to fall precipitously your purchasing power will be eroded. Do not keep your assets in cash---cash is depreciating at almost 1 percent per day (check the USD index).

Some of you may question my recommendation to not pay off your credit cards and to put them on a "I'll pay them if I get to them" mindset. I have no ethical qualms over doing this. They have for years enslaved people at 25-30 percent interest, outrageous fees, etc to maintain an immovable principle.

To help you clarify what is important, assume that you lose your job today. that you have no income. What is the things that you will need the most? Those are the things you should be addressing.

[icebear]

plan to plant a garden (didn't they used to call them Victory Gardens in ww2?)and if you have fruiting trees, make sure you gots the stuff to keep them healthy- if they have diseases, get them healthy asap, so anything they can produce means its stuff you don't have to buy.

[seekingtruth1]

okay Ill play Debbie Downer hahaha - recesion we will be lucky its not a Depression!:heh

i know ...not helpful.....:hehee

I got ZERO minutes of SLEEP LAST NITE! :hehee

[saulteux]

I would disagree here, though the reasons why will depend upon the laws in the state that you live.

It is too late to pay off the debts that you currently have--particularly credit card debts. You need to look at the different types of debt that you have through a particularly pragmatic view.

Credit cards, store credit, etc. are UNSECURED...that is, they are not guaranteed by the goods that you used to purchase with those lines of credit. In the event of a default, there is nothing that those companies have for recourse. This may vary according to your state (they may be able to garnish wages or place leins on tangible property in your state, learn if they can or not). Unsecured debt should be payed last, if at all in a severe recession/depression.

Secured credit (i.e. Mortgages/Automobiles, etc. that the lendor can sieze if payments stop) would receive priority payment. In a recession/depression the most important assets are those that are paid off and that you own outright. Look at your secured debt. Can you realistically pay those things off in the next 3-6 months? If not, paying extra on them now would be wasting your money because those assets will be recalled by the lender as soon as you default regardless of your equity. If you can pay them off in that time frame then do so.

Finally, essentials. Food/water/arrangement for shelter, etc. This MUST have the first priority. You should use available cash to secure these resources first, and you should do so as soon as possible. The dollar at the moment is beginning its final nosedive. As it's value starts to fall precipitously your purchasing power will be eroded. Do not keep your assets in cash---cash is depreciating at almost 1 percent per day (check the USD index).

Some of you may question my recommendation to not pay off your credit cards and to put them on a "I'll pay them if I get to them" mindset. I have no ethical qualms over doing this. They have for years enslaved people at 25-30 percent interest, outrageous fees, etc to maintain an immovable principle.

To help you clarify what is important, assume that you lose your job today. that you have no income. What is the things that you will need the most? Those are the things you should be addressing.

Excellent advice. I will heed it.

[Heartstorm]

I would disagree here, though the reasons why will depend upon the laws in the state that you live.

It is too late to pay off the debts that you currently have--particularly credit card debts. You need to look at the different types of debt that you have through a particularly pragmatic view.

Credit cards, store credit, etc. are UNSECURED...that is, they are not guaranteed by the goods that you used to purchase with those lines of credit. In the event of a default, there is nothing that those companies have for recourse. This may vary according to your state (they may be able to garnish wages or place leins on tangible property in your state, learn if they can or not). Unsecured debt should be payed last, if at all in a severe recession/depression.

Secured credit (i.e. Mortgages/Automobiles, etc. that the lendor can sieze if payments stop) would receive priority payment. In a recession/depression the most important assets are those that are paid off and that you own outright. Look at your secured debt. Can you realistically pay those things off in the next 3-6 months? If not, paying extra on them now would be wasting your money because those assets will be recalled by the lender as soon as you default regardless of your equity. If you can pay them off in that time frame then do so.

Finally, essentials. Food/water/arrangement for shelter, etc. This MUST have the first priority. You should use available cash to secure these resources first, and you should do so as soon as possible. The dollar at the moment is beginning its final nosedive. As it's value starts to fall precipitously your purchasing power will be eroded. Do not keep your assets in cash---cash is depreciating at almost 1 percent per day (check the USD index).

Some of you may question my recommendation to not pay off your credit cards and to put them on a "I'll pay them if I get to them" mindset. I have no ethical qualms over doing this. They have for years enslaved people at 25-30 percent interest, outrageous fees, etc to maintain an immovable principle.

To help you clarify what is important, assume that you lose your job today. that you have no income. What is the things that you will need the most? Those are the things you should be addressing.

I agree 100% !!! I think securing food and shelter are the most important!
I have to drive so far to work and though I drive a small car that gets great gas milage. I don't make alot of money. The gas prices already are making me look for work closer to home and really try to think of a job I can do out of my home. Not only for gas reasons, I am getting to the point where I don't want to leave my place unattended to long. I live way out with no neighbors to keep an eye for intruders! The Bible tells us that in the end days we will pay a days wages for a quart of wheat, We all know that these are indeed the end days so I don't forsee this getting better before the Lord takes us all home, I just want to be able to hang in here long enough !!!!!

[cbressler1976]

The way to survive a recession is to pray....and God will provide...