Top 5 Tips for Surviving the Recession

It seems as though we are in a full fledged recession, now we have to decide what financial choices we can make for surviving the recession. The recession seems unavoidable and that may mean a radical financial change for some to surviving the recession. Many people have lost jobs and the days of outrageous credit limits are gone. The entire country seems to have cut back and surviving the recession is their main concern. There are many well-established businesses that have not or will not be surviving the recession. The good news is that some analysts believe we are at the bottom of this recession and when you are at the bottom there is nowhere else to go but up.

Stop Using Credit Cards: Laying off of credit and credit cards is the first step to surviving the recession. Spending on credit brought us to the credit crunch and now it needs to end. You are spending money that you have not earned yet, essentially someone else's money. If you cannot stop your shopping spending habit it may be time to put your credit cards in the shredder or on ice.

If you decide to shred or ice your credit cards do not close your accounts, which will result in a lower FICO credit score. You may also need some credit in an emergency. If you are not responsible enough to stop pulling out the plastic then get a friend or family member to hold it for you, preferably someone you would be embarrassed to tell that you are just buying a pair of shoes or the latest tech gadget.

Even though the Christmas shopping season is coming up you do not need to go into debt buying the latest toys. Going deeper in debt around the holidays is not the best way for surviving the recession. There are several stores who are bringing Layaway back and you can take advantage of that. If you start buying gifts now you can buy one or two presents every time you get paid. Several other options for Christmas gift giving: simply cut back, make gifts, or try a gift exchange.

Refinance your credit: Get lower interest rates for all debt that you have. This may mean that you will refinance your mortgage or consolidate student loans. Interest rates are very low and refinancing can be a step in the right direction towards surviving the recession. You may even be able to reduce your credit card interest rates if you always pay on time.

Downsize: When you are surviving a recession is a good time to step back and decide if you can do with less. If you own a four bedroom home and the kids are long gone it may be time to move to a smaller house, as long as you can sell yours. That huge SUV you bought a few years back may really be too big for your actual needs.

Alternative Thinking: Find alternate ways to surviving the recession and get what you want or need. Begin using coupons when making food or toiletry purchases. Look around at what you are not using and sell those items on eBay, craigslist or at a garage sale. You can try making extra money online by freelance writing here at Associated Content. If you are handy with a sewing machine you have an excellent resource for surviving the recession. You can sell your handmade articles on Esty or at a craft show.

Start Saving: Saving while not key to surviving the recession is good advice anytime. If you have money in the bank it can rescue you from an unexpected auto mechanics bill or any other emergency bills. If you have money in the bank (the recommended amount of three or six months salary) and your job disappears life will be less stressful. You will have a longer time to look for another appropriate job.

In five simple steps you have the keys to surviving the recession. It may take a bit of critical thinking to get you out of the tough spots here and there but it can and has been done before.