SYRACUSE -- Amidst all the economic turmoil and rising unemployment rate, thousands of families across the country are facing serious financial hardship. "So many people are worried going forward. How am I going to handle my debt? How do I set up a budget?" said Gary Thurber of the Consumer Credit Counseling Service of Central New York.
Thurber says phones have been ringing off the hook. They've been fielding calls from some people who were laid off, others who are still employed. But they have one thing in common. They all have fears about how to manage their money in this economic downturn. "People are really panicked at this point in time. I think it almost paralyzes them. Sometimes they do nothing until it's too late," Thurber said.
But don't wait. Tonight, we have some simple tips to keep your credit rating in check.
Tip #1: Set up a spending plan and figure out how much you have coming in and going out.
"Count all the regular sources of income that are coming in and then also look at all your expenses," Thurber said.
Tip #2: Eliminate any unnecessary expenses. Just pay the priorities and the things you need to live.
"Priorities would be housing. So if it's a mortgage, rent, utilities. If they have a car payment, make sure they continue making that payment. Food, really the necessities of life," Thurber said.
Then turn to your credit cards and any debt you have.
Tip #3: Contact your creditors. They may actually be able to help.
"The creditors would much rather hear from you ahead of time. They're much more willing to work with you if you can show the need. Quite often, they have maybe a hardship program where they can reduce interest, maybe temporarily suspend payments," Thurber said.
And what if you're still employed? Do you need to pay attention to this too? "As the economy retracts, there's that trickle down effect. They might be fine now, but if demand for whatever they're producing or that service they're providing is reduced because other people are not working, it can catch up with them eventually as well," Thurber said.
Bottom line, there are some simple steps you can take to protect your crediting rating in this tight economy. But picking up plastic can be dangerous, so use cash when you can.
