FOUR STEPS TO STAY IN CONTROL

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.

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.

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.

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.

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.