Coping up with Recession

Despite politicians being mum in saying the R word, accept it or not everybody knows that the world economic downturn is much worst that what is expected. The dollar falling below the 50 cents mark is a clear sign. The construction industry particularly on the private sector is crumbling, job losses, businesses are closing.

Here are some tips to cope up with the recession:

• Spend wisely - buy only what you need, not what you want. Stretch your saving as much as possible.
• Pay high interest debts - Credit cards and personal loans are an expensive liability, with rates averaging almost 20 per cent. If you cannot afford to clear the debt, switch to a card with a lower rate of interest.
• Reduce your mortgage - Contact your mortgager immediately if facing trouble making mortgage repayments, preferably with a detailed proposal. Mortgagers only turn to repossession as a last resort, after considering repayment holidays or extending the term or type of mortgage.
• Negotiate for redundancy - If redundancy is inevitable and you have worked continuously for the same employer for two years or more, you are likely to be entitled to statutory redundancy pay.
• Job Hunting - Start updating your CV and sending to probable opportunities. Send as many as you can. Email is the best means as it is free.

There are many possible means to cope with this recession. Let us just cross our fingers that stimulus funds issued by the government will kick start the economy.