Time to Cut the Credit
by Business and Life Coach Carmen Carrozza
It’s been a few years of absolute ups and downs in our economy – with the downs far outweighing the ups for some. Mortgage crisis, foreclosures, the breakdown of our largest investment firms, and a banking industry that is in disarray. There is a slowdown in consumer spending due to the loss of savings funds and the lack of job security of many bread winners in the work force. The loss of over 40% of our investments, including retirement, children’s college funds and and overall savings plans will take many years, if ever, to recoup. What is the next shoe to drop?
Does everyone remember how we have paid for luxury items, vacations, holidays, gifts, and oh yeah, grocery over the past 25 years. If you guest CREDIT you get a gold star (Good news, gold is selling very high right now!).
Consumer credit outstanding in the U.S. is in the trillions. And that’s NOT including mortgages, only consumer credit. With so many families struggling, small companies trying to survive, and large corporations looking for cost cutting measures every day, there will be many people unable to keep up with the bills.
Credit is one of the first items to go unpaid in this environment. Mortgages, utilities and the necessities are payment priorities. It is always smart to have a plan in place for the worst of times, but sadly, many people do not, or are running out of their emergency funds.
The key right now is saving in every possible area you can. Look at your daily spending habits and find ways to save dollars. The dollars add up and help you get through the current economic crisis. look at your entire financial picture to discover other ways to save. Things will get better, it will be easier on those who sacrifice now and learn the harsh lesson taught by these times: Have a financial plan, stick to that plan and don’t get fooled again.
If you need help – call us. We can get you and your family on track to financial security (and a more stress-free life!)