How to Survive a Financial Crisis?

The Mayan apocalypse might not be true, but financial crises are very much real.

As the stock markets tumble, as more and more companies lay off and retrench their employees, you are well and truly aware that you could also be sucked into this financial crisis, however much you may think that you are insulated. You shudder to think about the consequences of having to face a situation where you might be forced to foreclose your mortgage loan and end up staying in a rented apartment. Though not desirable, you should know the various tricks and tips as to how to overcome the financial crisis that is looming large on the various countries in the world, including Australia.

Although Australia is a better off than USA or Europe, there are signs of recession in the county as well. The global recession is happening mainly because of the Eurozone crisis which has engulfed the entire world. It is indeed very important for us to know how to manage the financial crisis that may knock at our doorsteps, without any prior warning.

Steps to avoid facing a dire situation

The first thing that we should learn to do is to find out ways and means to cut down on expenses. As an ordinary citizen we should endeavor to save at least $1500 for rainy days. This is an important lesson as to live through the financial crisis. Saving money will come in very handy when the chips are badly down. You could avoid foreclosure of your home or could also ensure that you are able to pay off your car loan EMIs and credit card payments till things start looking up.

The next important lesson regarding encountering financial crisis is to be aware of the early signals and take immediate action. If you are a self employed person or a business owner, you should understand the small signals like lack of demand and irregularity of payments from customers, as early warning signs and insulate yourself by applying for insurance or coming up with an unique rescue plan.

Having a clean credit score can work wonders

The next important tip which could help you to answer how you can win over the financial crisis is to keep your debt record and credit score clean and unblemished. This will help you to raise funds at competitive rates should such an eventuality arise. Even simple things such as getting a phone plan or something more complex such as getting a 2nd mortgage will most definitely require a good credit score.

If you have never had problems paying back your debt, it means you are financial wise. If you had problems owing to any reason, in paying back debit card money, your credit rating will fall, increasing the premium paid every year. It is very beneficial if you have a ‘clean slate’, to frame the term, so long as debt is concerned. You will be able to avail the best personal and business fast cash loans. Moreover, having a clean credit record basically means that you are financially wise, you do not spend excessively and live within your means.

The best way to control finances is to control and limit your aspirations and dreams. Spend as much as you can afford to. If you are unemployed, try doing freelance jobs to compensate for the money lost. There are many ways in which you can survive the financial crisis engulfing the world.

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