Five Debt Relief Hints During A Recession

With reports of a recession frequently in the news along with equally numerous reports of soaring gas prices, an uncertain stock market, foreclosures, and families struggling just to make ends meet on a daily basis, more and more people are looking for ways to save money, protect themselves, and acquire out of debt.

Here are five simple tips for debt relief during worrisome talks of an impending recession:

1. bring down Your Personal Debt

While you really cannot bring down larger debts like your mortgage, unless you are in the position to refinance and doing so would benefit your situation, or your car loan payments, you could do something about your credit cards. If you are a customer in good standing, call each of your creditors and ask what could be done to either bring down the amount of your monthly bills, or acquire them paid down faster.

If, perhaps, you have two credit cards with a ridiculous rate of interest and were offered another card with a zero percent introductory rate as well as no charge for balance transfers, consider the offer and pay the card off as soon as possible while closing the first two.

2. Evaluate Your Spending

Much like creating a budget, realistically evaluating your spending is something you must do to protect yourself and relieve some of your debt. Although everyone needs to unwind and relax, are you and your family spending a bit too much on entertainment? What about eating at restaurants or ordering out? Could you be buying the generic versions of some products? Are your family's birthday and holiday celebrations way out of control?

Honestly go through a mental calendar month by month, writing down all of the unavoidable expenses and seriously reevaluating the rest.

3. Learn a New Skill

Protect yourself in these trying times by learning a new skill and expand your horizons, and your ability to earn money. This doesn't mean you have to completely change careers, but rather hone your existing skills or learn a few new ones that would keep you up-to-date and marketable.

Do you have a hobby that you truly love and could turn it into a moneymaker? Or, perhaps you could take a few classes at the local community college, either on campus or online at your own convenience.

4. do not Shy Away from the Stock Market

All bad things must come to an end, and the stock market is certainly no different. If you happen to have some extra money set aside, consider investing in a company you know would be around in years to come.

This isn't to say you should mortgage your house and buy up thousands of dollars in stocks, but rather a small investment that would hopefully grow and earn dividends when the market turns in the other direction.

5. Contribute to a Retirement Plan

It's never too early, or too late, to start planning for your future and your retirement. Many companies have 401k retirement plans where employees contribute and the employer matches or contributes a percentage to their fund.

It's best to pretend this money doesn't even exist until you do actually retire as there are hefty penalties for early withdrawals, not to mention this would be setting yourself back further.