What Does a Recession Mean for Consumers?
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If a Recession Hits ...
With the threat of a recession looming above us, Americans are beginning to ask: What would a recession mean for me and my family?
The experts at WalletPop.com take a look at how a recession could impact 13 facets of your financial life -- and what steps you should take to make it through the economic storm.
Click through our gallery to see what to expect and what you should or shouldn't do during a recession.
Next: If You're in Retirement ... -
If You're in or Nearing Retirement ...
"These are the people who are most likely to be impacted by the decline we've seen in the stock market. The closer you get to retirement, the more of your assets should be shifted over to things that aren't going to lose their value. You're trying to preserve the value you've accumulated," says Tracy Clark, an economist with the W.P. Carey School of Business at Arizona State University.
· More on Recession & Retirement
Next: If You Own Stocks ... -
If You Own Stocks ...
Don't panic and start selling just because you hear warnings of a recession. You may be locking in losses that are not necessary, especially if the assets in your portfolio are being held for the long-term and you won't need them for ten or more years.
· More on Recession & Your Stocks
Next: If You Have a 401(k) ... -
If You Have a 401(k) ...
Unfortunately, it's impossible to "recession-proof" your 401(k), because no sector is immune from an economic slowdown. You can, however, take some precautions to limit the damage. For one thing, stay the course. Unless you are in dire financial straits, don't cut back or quit contributing to your retirement fund.
· More on Recession & Your 401(k)
Next: If You Need a New Car ... -
If You Need a New Car ...
With recession fears growing, it might not seem like a great time to think about a new car. But if you want (or need) a new vehicle you might actually be able to benefit from the challenging economic conditions. The combination of desperate auto makers, motivated auto dealers and lower interest rates makes it an auto buyers market.
· More on Recession & Car Buying
Next: If You Started a New Biz ... -
If You Started a New Biz ...
If you've recently started your own business, the potential for a recession may have you in a panic. But there are ways to try to weather the storm. For example, try to diversify. Look for new types of customers or a new way to market your offerings. Also, continue to market yourself. It's tempting to cut back on advertising while money is tight. But, in fact, a downturn may actually require more marketing efforts to stay in the game.
· More on Recession & a New Biz
Next: If You Need a Loan ... -
If You Need a Loan ...
While a recession creates many economic woes, those who are in the market for a loan (mortgage or otherwise) can often find value during these times. Rates are low, which makes it a great opportunity to refinance your house or tap your home equity to fund a long-term worthwhile venture. There are some cautions, though. Click the link for more advice.
· More on Recession & Loans
Next: Consolidate Debt? -
Consolidate Debt by Refinancing Your Mortgage?
But for all but the most disciplined and job-secure of folks, consolidating your debts into your mortgage in a recession environment is possibly the worst thing to do. If rates should go up, or you suffer a sudden income reduction, it will be much harder to cover your mortgage payments. Plus: Having a clean slate with credit cards often has the wrong effect on people.
· More on Recession & Consolidation
Next: If Bank Has You Worried ... -
Worried About Your Bank?
Your bank accounts are FDIC-insured up to $100,000, but if you are staying up at night worrying over the solvency of your bank -- move your money. Why? Most banks are similar enough that there's really no reason to keep money with one that makes you worry.
· More on Recessions & Your Bank
Next: If You Have Card Debt ... -
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If You Have Credit Card Debt ...
To protect your family and your finances during these very uncertain times, it is critical that you batten down the hatches and prepare to ride this out. One critical way to do that is by tackling your credit card debt. You DON'T need a lot of money to make an immediate dent in your debt. Armed with three simple steps and even $10 extra a month, you can take a big bite out of your credit card debt. Click on the link to get started.
· More on Recession & Card Debt
Next: Buying a House -
If Buying a New Home ...
Now may be the right time to begin investigating your home-buying options. We are in the throes of a double downswing of the costs associated with entering the single family home market. As real estate prices are deflating regionally, the interest rates on first mortgage loans to buy those properties are at rock-bottom levels. Deflated real estate markets aren't always bad things, when you're in the mood to buy some. Click below to see some of the things you should consider if you want to buy in today's climate.
· More on Recession & Home Buying
Next: Heading to College -
If You Kid Is Heading to College Next Fall ...
Parents of college-bound seniors everywhere are blanching. A lot of financial ugliness is coming down the pike, and here you are, ready to be hit with a whole new phalanx of expenses. What's a parent to do? Strongly consider the community college option. Unless your kid got a full ride to their first pick university, It makes too strong financial sense not to examine this option closely.
· More on Recession & College
Next: Short on Cash -
If You're Low on Cash ...
Freelance writers frequently lead a feast or famine lifestyle. Out of necessity, they learn how to prepare for funds running low. Here are some of their key tips: First off, in feast times, have a stash of cash, a couple hundred dollars tucked deep away. When you have NO MORE money at all, this stash will buy your kids' their milk and you a gallon of gasoline. Other tips: Save all change, know thy pawnshops, babysit or teach a class, if you've got skills to share.
· More on Recession & Empty Pockets
Next: If You're Laid Off ... -
If You're Laid Off ...
First things first: File for unemployment immediately. Don't miss any benefits you're due. Get some help with your resume and begin your job search right away. Then take a hard look at your family's budget and see where you can immediately cut costs. Come up with a worst-case scenario budget.
· More on Recession & Layoffs
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Recent Comments
LyonsResearch 03:44:55 AM Mar 17 2008
Christopher D Lyons Independent Researcher. tiptopwebsite.com/netspendreferral4216823698
maggieram21 11:43:12 AM Mar 07 2008
The war is wrong. It was started on a lie. Other countrries at this moment are doing what sadam huiesen did. Terrorists are like liars you never know who they are and where they come from. The only thing we know is that they do not value life and can kill you physically just like a lie can kill you emotionally. The aftermath of this war is going to be like the viet-nam war. The U S brought over thousands of vietnamese whom they said wanted freedom and set them up with homes, jobs, and citizenships, something they did not do for our war veterans. The U S left them on the outside looking in. Expect the same from Iraq.
ALBERTDEE 05:10:34 PM Feb 20 2008
I WORKED FOR TWENTY YEARS FOR GOVERNMENT AGENCY AND HAD TO HAVE PART OF MY SPINE REMOVE. I WENT TO SS DISABILITY TO DRAW MY DIABILITY MONEY WHICH I PAID A LOT OF MONEY INTO AND WAS TOLD THAT I DIDN'T QUALIFY BECAUSE MY RETIRED HUSBAND MAKE TOO MUCH MONEY FOR 2 PEOPLE AND THERE WERE ILLEGALS AND IRANIANS IN THERE WHO QUALIFY FOR SSI BECAUSE I WAS TOLD THAT THEY DIDN'T HAVE NO FINANCES AND THEY WERE DISABLE AND I HAD STITCHES GOING DOWN MY SPINE AND A NECK BRACKET TO HOLD MY HEAD UP BECAUSE I COULD NOT HOLD MY HEAD UP ON MY OWN AND WAS IN THERAPY. i WENT OFF ON THOSE PEOPLE AND I ASK EVEN IF I CAME IN ON A BED THEY STILL WOULD NOT HELP ME. i HAVE WORKING SINCE I WAS 17 AND I AM 57 . MY COUNTRY HAS SOLD OUT AND GIVES OUR MONEY TO EVERYONE BUT US. I PROBABLY WILL NVER EVER GET THE MONEY THAT I PUT IN THE SYSTEM AND THEY USE TO TAKE AS MUCH AS 180 TO 200? OUT OF MY CHECK FOR DISABILITY AND SS. TAKE THAT TO THE BAK AMERICA WE OWN NOTHING AND WILL NEVER GET WHAT WE WORK SO HARD FOR IT
Flog490 04:19:45 PM Feb 13 2008
Recession, 59 laid off since August and not going back cut backs live in NWOHIO, sent this, email that, pound the sidewalks,APPLY<APPLY the ship is sinking by the way 5 more weeks of unemployment after taxes 315.00 a week thank god the car is paid off thank god I am a veteran for my medical needs or I would be SOL the DOLE forget it I would not even qualify am I worried HELL NO?
jamie98ta 01:30:58 PM Feb 11 2008
I love the "card debt" one. Add another $10 to your payment. Ya, that will do a hell of a lot when i already owe $40,000 to the idiots.
Hotmama090194 12:28:59 PM Feb 08 2008
WHAT ARE YOU PEOPLE FRETTING ABOUT ? IF YOU ARE SAVED BY THE GRACE OF GOD DON'T YOU KNOW HE IS GOING TO SEE US THREW THESE TRAILS. READ YOUR BIBLES I'M LOOKING FOR JESUS TO COME BACK. I KNOW HOW YOU ALL FEEL ITS HARD MONEY IS HARD TO COME BY EVERYTHING COST SO MUCH BUT I KNOW MY GOD IS NOT BROKE AND HE WILL SUPPLY THE NEED!!!!!!!!!!!!!!!!!!! MAY GOD BLESS YOU ALL AND I PRAY THAT YOU ALL KNOW WHO JESUS IS!!!!!! IF NOT PLEASE ASK JESUS TO COME INTO YOUR HEART!!!!!!!!!
Ccdae5 07:39:20 PM Feb 07 2008
Bonnie 1291 - I wouldn't take it out of the bank but I would certainly dump any stocks I had left. Invest your money in guns, ammo, tools, and canned food, they will all hold their value and probably increase especially if Hillary gets elected.
Ccdae5 07:37:07 PM Feb 07 2008
Sjpxmas - you are kidding right?? You are talking about Communism. The Soviets have been trying to get it to work for decades and guess what, it doesn't. They are still much worse off than us even with their government pulling all of the strings. Our problem is too much government and too many greedy people taking money from the uneducated masses who spend their evenings watching mindless TV shows like American @sshole instead of bettering themselves. Too many people are lazy and want someone else or the government to take care of them. It doesn't work that way, you have to take care or yourself. If you don't have enough money, give up some luxuries, go back to school and get a better job, get a second job, or whatever. But I can assure you that sitting around crying won't fix it. And Hillary can't fix it either, all she will do is raise your taxes so she can give hand them back to you.
ANDGINN168 06:50:26 PM Feb 07 2008
WAKE UP AMERICA. ALL THE LIES , ALL THE CORPORATE GREED, ALL THE ILLIGALS, WHO DRAINED THE SYSTEM,AND SENT THE MONEY HOME TO MEXICO. ALL THE JOBS THAT WENT OUR OF THE COUNTRY, ALL THE BANKS, OIL COMPANYS AND RICH SHAREHOLDERS, HAVE STOLE THE AMERICAN DREAM. RELIGION IS ABSENT IN SCHOOL, RICH GET THE BIGGEST TAX BREAKS AND THE ELDERY ON SS, WHO PAYED THERE SHARE AND HELPED GROW AMERICA,AND FOUGHT IN THE WARS, ARE GETTING SCREWED THE MOST.
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