Recession Survival

We’ve been hedging round it, and many mainstream media still refuse to acknowledge it, but it’s more than likely that we’re recession bound. A toxic combination of falling house prices, soaring energy bills, tighter lending practices and stock market jitters has sparked fears that the economy is teetering on the edge of disaster, with large-scale job losses and home repossessions to come.

In these economically challenging times there are ways to ease the pressure on your purse strings.

The message is simple for thoses struggling with debts on overdrafts, credit cards or personal loans. Don’t save until your debt is cleared. Debt bills have way higher interest than any savings account would give you, so don’t waste your time and money saving until all the bills have been cleared!

Don’t scrimp on insurance. It will be tempting to cut out home, car or life cover to save cash, but a bill for thousands of pounds if something should happen will wipe out any savings you have.

Although, I have to be honest and tell you that I think insurance is the second biggest con industry after banking. They sell you something you hope you never have to use, and when the worst happens and you have to make a claim, they make it as hard as possible for you to get what you paid for, and then they penalise you for using the policy you had paid for, sometimes for years without making a claim and add a massive % onto the cost of  your next policy. Seems like a winning formula for the bosses of the insurance industry.

That said, if you don’t have insurance, you may never need it and if so great. But if you are burgled, or hit by flood or an accident then it may cost you thousands you’ll have to find from somewhere. The choice is yours.

Monitor your bank accounts and cancel old direct debits, monthly subcriptions you no longer need, any charges where you’re not receiving any direct benefits.

Check out my previous post which has an in depth recession survival plan and don’t just sit there thinking about it, do it.