The economy is in a recession and you are faced with a possible lay-off or worse your place of employment may close create a panic in many people today. You have always been good to pay your debts and rank out with a high credit score. Now you are afraid that all that might go down the tubes without employment and no hopes of employment in the future. Something begins to grip your heart and you swallow hard knowing what this devastation will do to you and your family. The first thing on your agenda is do not panic, relax, take a couple of deep breaths. You should find a quiet spot where you can set for a few moments and take these relaxation exercises in order to clear your mind.



First loosen your short and necktie if wearing one, remove your shoes, and make yourself as comfortable as you possibly are able too. Then take ten deep breaths by taking one in and letting it out slowly. Start with your foot area rotating first the right foot ten times and then switch and make circular motions with the left foot ten times. Then start with your right leg bending it upward ten times and then your left leg do the same motion. Then start with your right wrist rotate it ten times, then your left wrist rotate ten times after that do your arms in the same manner. When you get to your neck and head area make circular motions going to the right ten times and then do the same thing going to the left. Finally, start relaxation breathing by taking in deep breaths and letting them out slowly about twenty times. When you are breathing try to put yourself in a very comfortable place thinking good thoughts. Now that you have relaxed your body and your mind you can begin to manage your debts.

Debt management should start with a budget. Your first budget is an honest assessment of what you owe and how much you and your family normally spend. This should be inclusive of everything leaving out nothing especially the frills. When you have made an honest assessment of your expenditures then make up a new budget of things that you and your family really need. This budget is going to be harder to do as you are going to be leaving out a lot of frills that once were considered necessities. You should build your budget around this theory in order to survive us need food, lodging, transportation and medical care. Everything else can wait! Then start thinking of ways to cut back on each one of these necessities in order to survive. You have two or three vehicles and the high cost of insurance is eating away at your budget that is not a necessity. Perhaps one of your vehicles is older and you can cut back on the insurance cost by not having full coverage. The family needs adequate transportation so the bigger vehicle will need to stay but the luxury car must go. How much have you cut back on your budget? Ideas put into motion like this before your family income crashes can help keep your debts in perspective and better managed.