How to Get Through the Recession

Though the government avoided saying the “r” word for months, it’s been officially announced that the United States has been in a recession since December 2007.

Your job could be at risk. Cutting jobs are one of the ways companies keep down their operating costs. The country has already reached its highest level of unemployment since 1996 and more companies announce massive layoffs. You never know if your job is next so it’s a good idea so have an emergency fund of three to six months of living expenses to hold you until your next job.
It could be hard finding a job after a layoff. The overall number of jobs has decreased and that makes it hard to find a job once you’re unemployed. Use your emergency fund wisely and take advantage of your state’s unemployment insurance.

Update your resume now. If you get laid off, you’ll be able to start looking for a new job immediately. Take advantage of any skills training your current job offers. The more skills you have the more attractive you will be to future employers.

Keep your credit card debt under control. Though you may be tempted to rely on credit cards or loans to help you get through the recession, it’s better to keep your debt level low. That way, in the unfortunate event of a job loss, your debt bills will be lower.

Lock in your mortgage interest rate. Part of the recession was caused by increased mortgage payments on adjustable rate mortgages. As mortgage payments increased, consumers had less money to spend on consumable goods. Work with your lender to modify your loan with a fixed interest rate. Or, try to refinance your mortgage into a fixed-rate mortgage. Though your payments might be higher than they are currently, you never have to worry about them increasing.