In the face of an unpredictable economy, can you withstand a fiscal crisis? We'll show you four steps to take to protect your household from falling into debt during low financial times.
Our slide show begins with the navigation to the right.
Step 1: Prepare for the Worst-Case Scenario
Come up with a plan to live on less. You never know when you might lose your job or end up with unexpected bills. June Walbert, a financial planner with USAA, recommends taking out a mortgage that you can afford to pay on only one income, even if both spouses work.
Sponsored Content
Step 2: Keep An Emergency Fund
You need at least six months' worth of expenses in an emergency fund. Many people got lazy about emergency funds when it was easy to get a home-equity line of credit. But with lenders pulling back equity lines, it's important to build up your emergency fund again, even if it means temporarily decreasing retirement-plan contributions.
Sponsored Content
Step 3: Lower Your Credit-Card Rates Now
First, ask your credit-card companies for a better deal, which can work if you have a good credit record. Or take advantage of a 0% balance-transfer offer -- just be sure to pay off the balance in full before the teaser rate expires, which is usually after six months.
Sponsored Content
Step 4: Pay Off Your Mortgage Before You Retire
Most people aren't in a rush to pay off their mortgage if they have a low fixed rate and can earn more by investing elsewhere. But if you plan to retire soon, repaying that debt can give you a lot more flexibility, especially if your investments are down and your other expenses have increased -- which is happening to many retirees this year.
Sponsored Content
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
Ask the Editor: IRAs, 401(k)s and RMDsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on IRAs, 401(k)s and required minimum distributions
-
What to Do With Your Tax Refund: 6 Ways to Bring GrowthUse your 2024 tax refund to boost short-term or long-term financial goals by putting it in one of these six places.
-
What Does Medicare Not Cover? Eight Things You Should KnowMedicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
15 Reasons You'll Regret an RV in RetirementMaking Your Money Last Here's why you might regret an RV in retirement. RV-savvy retirees talk about the downsides of spending retirement in a motorhome, travel trailer, fifth wheel, or other recreational vehicle.
-
The Six Best Places to Retire in New Englandplaces to live Thinking about a move to New England for retirement? Here are the best places to land for quality of life, affordability and other criteria.
-
The 10 Cheapest Countries to VisitWe find the 10 cheapest countries to visit around the world. Forget inflation and set your sights on your next vacation.
-
15 Ways to Prepare Your Home for Winterhome There are many ways to prepare your home for winter, which will help keep you safe and warm and save on housing and utility costs.
-
Six Steps to Get Lower Car Insurance Ratesinsurance Shopping around for auto insurance may not be your idea of fun, but comparing prices for a new policy every few years — or even more often — can pay off big.
-
How to Increase Credit Scores — FastHow to increase credit scores quickly, starting with paying down your credit card debt.
