Recessionproof Your Finances

Saturday, March 1, 2008

Recessionproof Your Finances by John Addison (NAPSA)—Whether you call it a recession, a slowdown or simply a rough patch, turbulent financial times can be weathered. Try these tips: Get Out Of Debt ASAP Try to pay down credit cards and high interest debt as soon as possible. And if you’ve been playing the balance transfer game, look out: Those zero- or low-interest balance transfer offers are likely to become a thing of the past as : more card issuers _Addison tighten their belts. Leave Retirement Alone Raiding your 401(k) or IRA is one of the worst financial moves you can make. You'll get hit with stiff penalty fees, not to mention your loss in future earnings. Stash Cash Try to build a cash cushion of three to six months, in case of emergencies. That can keep you from having to charge unexpected expenses. Don’t Rely On Credit Charging essentials like groceries or gas is a serious financial red flag indicating yourlifestyle is out of balance with your income. Take steps to downgrade your lifestyle (downgrade your car or house) or increase your income (get a roommate, start your own business) and get your finances in balance. Watch Your Statements Manylenders are raising rates, hiking fees and lowering credit limits. If your rate gets hiked, call the issuer and ask why and whetherit can be reversed. You might also consider consolidating your debt to get a better handle on payments. Guard Credit Try to avoid using more than 10 percent of your credit limit when making purchases—acredit utilization of more than 50 percentis likely to hurt your credit score. Late bill paymentscan hurt yourscore,too. If you can’t make a payment, contact your lender to make an arrangement or set up a paymentplan. Keep Saving Don’t let emotions keep you from contributing to yourretire- ment accounts. You can put $5,000 into an IRA in 2008, or $6,000 if youre 50 orolder. Back To Basics Update yourlife insurance and be certain you have a will in place to protect those you care about. Learn More Financial professionals at Primerica have created a guide that can show how to take control of your financial life. To get a copy of “How Money Works,” write to Primerica, 3120 Breckinridge Blvd., Duluth, GA 30099, ATTN: Corporate Relations, or call (770) 564-6329. For more information, visit Www.primerica.com. John Addison is co-CEO of Primerica, a subsidiary of Citi- group, Inc.

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