How to Recession Proof your Personal Finances

By: Kent Irwin

Looking back over the last 50 years, housing downturns have usually signaled pending recessions. Now with the first employment drop in 4 years, stock market fluctuations and the credit crunch many wonder if we may be headed that direction again. Wall Street bulls, or those who have a positive outlook, hope that strong global economies will keep things on an upward track.

To a great extent, our economy rests on the shoulders of the strength of the American consumer. If we are able to continue spending, many corporations may report positive results, which will buffer negative downturns. However, the consumer may be running out of steam when you consider the low savings rates, high level of debt, home foreclosures and consumption of home-equity coupled with stagnant home prices.

Tips for Financially Challenged Individuals

Those in financial difficulty are more susceptible to the affects of a recession, because they probably don't have adequate savings or the ability to borrow more without risking financial disaster.

Negative financial circumstances can come at any time such as a major car repair or large health bill that isn't completely covered by insurance. But, if a recession were to occur the likely ways it affects people are:

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