A recession can cause serious economic harm, especially for those that have not taken the necessary steps to prepare. The first thing consumers should focus on is paying off their credit card debt to leave some leeway in their budget when the recession hits.
BOSTON (PRWEB) August 29, 2019
Although the economy has been stable for some time, it is only a matter of time until it takes another downfall. With a recession likely to occur in the near future, it is never too early for consumers to prepare for the upcoming financial storm. To help, national nonprofit American Consumer Credit Counseling (ACCC) gives six tips on how consumers can recession-proof their financial life.
“It is imperative that consumers take the time now to start protecting themselves and their families from the upcoming recession,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “A recession can cause serious economic harm, especially for those that have not taken the necessary steps to prepare. The first thing consumers should focus on is paying off their credit card debt to leave some leeway in their budget when the recession hits.”
According to a recent survey by the Harvard Business School Online and City Square Associates, two out of three people are not prepared for the upcoming recession. The survey also found that only 27 percent of respondents have six months’ worth of expenses saved. More than half (54 percent) would consider getting a side job to earn an extra income.
ACCC helps consumers prepare for an upcoming recession.
1. Pay down debt – It is important for consumers to try to pay down any outstanding debt, especially credit card debt. Paying off credit card debt not only spares the consumer the cost of high interest rates, but also creates some breathing room in a consumer’s budget once the recession hits.
2. Build an emergency fund – There isn’t an exact amount that all consumers should have saved in their emergency fund, but it is recommended to have six months’ worth of expenses saved.
3. Get a side job – Consumers should take a look at their skills and use them to start earning extra income with a side job, such as driving for Uber or Lyft, to diversity their income.
4. Cut unnecessary expenses – Consumers should start cutting back on unnecessary expenses such as premium channels, shopping sprees and going out to eat on a weekly basis. Basically, consumers want to only be spending on essentials.
5. Adjust 401(k) – If a consumer is nearing retirement, they should consider putting their retirement funds into bonds. If the consumer has plenty of time before retirement they should keep their funds in stocks to prepare for the economic up-turn.
6. Excel in your career – Consumers should continue to develop their skills so they have a leg up in their company should the recession cause layoffs. They should make themselves irreplaceable.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling and student loan counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at http://www.ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx