Surviving the Crisis

Posted By: Allison Franklin

With the financial crisis showing no signs of disappearing it is important for people to understand how to survive these tough economic times. When people are in a financial crisis they believe their only way to survive to get in debt and keep increasing this amount until there is no way out. However, if people educate themselves on the basics of finance and debt management then they will see that there are other ways to survive tough times. The first step that needs to be taken is to set up a budget, people need to see what exactly they have available to spend. Most people do not do this, which is a reason why we are in a financial crisis. People have been living beyond their means and eventually the amount of debt could not be sustained. Once the budget is set up, people need to look at where their money is going. If things are not absolutely necessary then they should be temporarily cut until their financial situation turns around. I know this step is easier said than done, but it is very important. Once the budget is setup, people need to figure out how to manage the debt they already have. The easiest way to do this is try to get on a regular payment plan. If you are unable to do this the best place to go is a consumer credit counseling agency. They will help you manage your debt and get out from under it. With these few steps, people will be able to make it through these tough times and once the financial crisis is over people should continue to follow these so there is not another crisis to follow.

Sources:

1) http://financialplan.about.com/cs/budgeting/a/Budgeting.htm

2)http://money.cnn.com/magazines/moneymag/money101/lesson2/

3)http://en.wikipedia.org/wiki/Personal_finance