Biggest Recession Worries?
Recession is big news these days. We read/hear about foreclosures and we all know about higher prices because we’re the ones paying them every day. Everyone I talk to is worried about how this will affect them.
I’m giving a special free teleseminar called “Dealing with Financial Worries” to give some hope and strategy for surviving hard financial times like these. If you’d like to get call in details, please sign up here.
I want to make sure I tackle the specific urgent issues that my readers are dealing with, so would you do me a quick favor? Post a comment below or click 
and tell me what you’re worrying about right now. You don’t have to leave your name, you can post anonymously. I’m looking for the real thing here so please don’t sugar coat it.
Just answer the question: What is your number one financial worry?
Warmly, Cindy
I am worried about retirement. I do not have enough savings,
I have too much dept.
My morgage is fixed but a lot.
I am divorced and had to pay back taxes etc and now I am trying to catch up.
I get so anxious that I spend recklessly to feel good.
My only hope is that when the economy gets better and before I retire I will refinance my home at the lower balance to get my morgage down and manageable.
I intend to work part time after retirement and I do not intend to retire until I am about 67,which is 12 years from now.
My plan is to pay off all credit cards; I will need a car but will try to have it paid off befre I retire.
Hi Cindy, I first corresponded with you when you were in Oregon, a couple of years ago. You were so kind, helpful and patient and I really appreciated what you related to me at the time. I did what you suggested and I am trying to pay off all my credit cards, some with double payments, but it seems I am only spinning my wheels, and not getting really anywhere. In fact, one of my c/c companies that I overpay, just raised my interest rate to 23.99% and I have NEVER been late with ANY payment, I pay multiple payments and I have a fairly high FICO score of 729. I spoke with them yesterday and they told me IF I continue to pay my account on time, maybe in four months they will see about lowering it again. I started out with this account at 7.99%-then they raised it to 11.99%-then 14.99% and now a whopping 23.99%. I was in Europe at the times my rates went up, and I just returned, I sing Broadway on Cruise ships as I told you before, and all my cards are o Autopay, and I have no way when I an at sea, of getting any mail. I do have a lap top, but rates at sea, even for crew are not inexpensive and really hrd to get on line unless one is in port and that is not always the case. What can I do??? I am at a loss at this moment. Can you give me some advice??? Jeanne Vanyo
Hi Paulette, I empathize with you. I know it feels overwhelming. Have you thought about getting a roommate? A friend of mine is in a similar situation and hadn’t even thought of it until I mentioned it to her. She’s going to start out with someone for the summer and see how it goes before she makes a full commitment.
Also, the best think you can do about debt is to stop using your credit cards. There have been studies which show people spend between 10% and 30% when using cards vs. using cash. That also means that all your payments are really working on the balances.
Hope that helps a bit, Paulette.
Warmly, Cindy
Hi Jeanne, it’s good to hear from you although I’m sorry for your troubles. If you have the original fine print that came with your account, I’d look it over and see what it says about raising their rates. If you haven’t used the card since they increased the rates, you might be able to close it and have it go back to the lower same rate. Don’t be shy about asking for a supervisor and calling back frequently.
With your excellent credit, you might want to look around at other credit card companies, too.
Unfortunately, we’re going to see more and more of this because the credit card issuers are the same banks who have taken a sub-prime bath and they are looking for ways to make it up.
Hope this helps, Jeanne!
Warmly, Cindy
Hi, Cindy. Thanks for asking! My biggest recession worry is that people are going to tighten their spending and decide that “luxury” services such as coaching, massage therapy, facials, etc are expendable. I have many small business clients who believe they have observed the effects of a recession already in that customers are scarce. But sometimes I wonder if they use that as an excuse to not work harder (“what’s the point?).
But if a recession is real and truly the cause of lack of spending, what is the solution?
I am most concerned about my business. As a coach it seems people require coaching even more now than in the good times, however, counseling/coaching is the last on the list of necessities. I can understand this – but the holding back on spending money that will help you feel better about things is kind of backwards – yet it is what we do.
So, for me, my biggest concern is that my business will not fold – but just feel the pain – well it is already feeling the pain. I am now looking for supplemental work to take the edge off.
The problem is that when people get scared and stop spending, then the store has to lay people off, so they stop spending, and more people get laid off and more stores close – it is such a nasty cycle. The same money is out there – it is just that people stop spending it (well things are costing a whole lot more), so the few hold on and get richer, while the rest of us struggle. I don’t really understand it all – except that I see the circle clearly.
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