Simple Steps To Beat The RecessionPosted on: 09 December 2008 by Gareth Hargreaves
You can overcome the looming recession with six simple steps.
Central banks in the US and UK are acting to hold off a looming recession. With the economy slowing down, we offer six tips to recession proof your life.
Cut Your Spending
Make this a priority. Weigh up whether you really need that new flat-screen TV, and maybe going on a plush overseas holiday can wait one more year.
Making sacrifices this year and living on a tighter budget will leave you much better off in the long run.
Reduce Your Debts
Pay a lump sum on your credit card, and reduce any loan repayments. Make sure that you are paying the lowest rate possible on any borrowing you have.
Slash Your Bills
Make sure you are on the cheapest deals for your gas and electricity. If you have a mobile phone or broadband see if there are cheaper options available.
Chances are, if you have been on the same deal for more than two years then you can cut your bill.
Put money away for a rainy day and make sure you have a cushion of cash savings.
There are some good rates around at the moment, particularly on ISAs.
Review Your Mortgage
Normally, when a recession strikes, interest rates are cut. This can be good news for homeowners as it means the price of tracker mortgages will fall.
There are some good tracker rate mortgages available, but don't take the risk if you cannot afford to. Taking a fix may mean you miss out on a possible rate cut, but it does give you the peace of mind of knowing what you will pay each month.
If your budget really gets tight then there are some drastic options available for reducing your monthly repayments. You could move some of your loan to interest only for a short time. Or increase your mortgage term from 25 years, to 30 or 40. Don't skip mortgage repayments.
Don't Change Jobs
Companies make cutbacks when their profits get hit and staff are usually the first to be axed from the balance sheet.
New employees can often be first in the firing line.
Do you have any tips or advice to beat the recession?
If so, let us know by leaving a comment in the box below or share your thoughts with other readers in the 50connect forums.
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