Surviving Our Nation's Economic Crisis

Times are tough. The economy is in a shambles. Job security is iffy. Costs are going up but salaries are not keeping pace. According to MSN Money, about 43% of Americans currently spend more than they earn each year. According to Kim Khan, author of “The Basics, How Does Your Debt Compare?” the average household carries approximately $8000.00 in credit card debt.

Our nation is currently operating within an expansionary fiscal policy in an effort to address the current recession. The Federal Reserve has enacted monetary policies to try and correct the nation’s economic hemorrhaging, but is it too little, too late?

If your family is like many, you are feeling the effects of the bad economy. Whether it’s a job loss, high consumer credit debt, or just increased costs overall, just about every family is under financial pressure. So what can we do to survive in these difficult financial times?

While it’s hard to separate the emotion from the logic, it’s important to step back and take a clear, objective look at your finances. If you don’t already have one, take the time to sit down and create a family budget. The experts suggest that you start by tracking three months of actual expenses to get an accurate picture of what you are really spending each month.

A great source of information is the Association of Independent Consumer Credit Counseling Services (AICCCA). Call 211 from your local calling area to locate the local CCCS office. Members of this organization have a variety of free budgeting tools, worksheets, and online calculators for anyone interested. These are great tools for working out a budget or finding out the most efficient way to pay down consumer debt. Budgeting is critical to your family’s financial health. By taking the time to sit down and document your income and expenses you can see where you can cut back.

If you are facing bankruptcy, or job loss and are struggling to pay your bills, falling behind, are unable to pay your rent or mortgage, CCCS counselors can offer free assistance. Counselors are available 24/7 and will help assess your personal situation to help you get out of debt or they will work with your creditors to help get more favorable terms. Don't just assume nothing can be done. This nationwide non-profit organization is available to help.

Some budget-cutting suggestions: Order take-out once a month instead of every Friday….or go to a free concert on the green instead of a night at the movies. There are lots of ways to save without living like paupers. Taking advantage of your local library is a great way to expose your kids to cultural and educational activities as well as a great way to save money! Did you know that you can take movies out at your local library? Why pay to rent? Or that most libraries offer free or discounted admission passes to local museums and tourist attractions?

By being mindful of our actions, we teach our children to conserve resources (e.g.: turning off lights and televisions when not in the room) and we save money at the same time. Using a little creativity to find free or low-cost activities helps your family’s bottom line while taking advantage of the many wonderful activities that are often overlooked right in our own communities.