No problem smcc. I get a little defensive (in case you couldn't tell) when I feel people discount what I'm saying because I may be younger than them. But, thank you for clarifying your earlier comment.

That's very true, the only difference is, we got the war (on terror) 1st and now we in the recession.

Hasn't the war with Iraq contributed to the decline of today's economy?

The age statement Brian23 was in reference to me thinking I'm twice as old as you (which I am) and maybe seen a little more, no more, no less.

When fuel prices started to skyrocket, people here in Atlanta just stopped driving unless it was necessary. Many started to carpool and yes, some robbed Peter to pay Paul.

Love your idea of having 3 - 6 months savings. I try to put away 5 - $700 a month away for saving but like everyone else we don't live in a perfect world and anything can happen over 30 days.

Here is the scary thing Brian23, Remember Roosevelt didn't get us out of the Depression, WWII did. Hopefully it won't come to that this time around..............

Brian23 I will assume that your young. The majority, not all mind you who have resorted to using their cards to make ends meet is because they are "living beyond their means"

That's a pretty bold statement there. I am 25 (so yea pretty young) and my co-worker is 33 (so still pretty young).

I am not saying it was the only reason why people resorted to charging to CC, and I am not in their (co-workers) situation so I wouldn't have the complete backround on why. I am just saying that a lot of people I have spoken too tell me that was the reason why they got behind on everything. Granted monthly fuel expenses are really only a minimal charge (if one considers all their living expenses), it still doesn't help if your on a monthly budget and your gas cost increases 110% per month. So then you have to borrow from over here cover over there. And the economy was great for a while there and yes a lot of people took advantage and didn't think things could get this bad, but unfortunately we just all have to hold on and have patience and things will go back to normal.

And I am a very big advocate of savings (I believe that everyone should have 3-6 months worth of money in the event they ever did lose their job). However, when almost 90% of americans live paycheck to paycheck, that ideology goes out the window.

I am scared that they only thing that's keeping my pay steady is the fact that I work in a unionized position. It's scary to think that it expires in '10.

HJM331 youi would be surprised. Some people figure they have worked hard all year and want that Flat Screen and make their debt a second priority. "I will put something on it (my debt) but I want that toy !" Instead of thinking of paying all their debt down or off it releases more disposable income into their weekly check and here's a clue "maybe save up for it ?"

Eldarwen, congrats on the raise and you continuing to have your job. $.60 cents, $6.00, or $60.00, a raise is a raise is a raise ! Nothing more important these days than getting up and knowing you have a job to go to in whatever capacity than not having one at all ! For everyone that is looking, Keep your head up, God hasn't forgotten you !

Right now, I am saving what I can, but I will be able to save a lot more when I pay off my credit cards. Right now, I am lucky that I have a job and that the contract was approved. That means that my pay raise came through and that I got my back pay. Making 60 cents more an hour adds up and really helps me. I guess unions are good for something.

I can't believe people are thinking of buying a flat screen TV with their income tax. I'm thinking of selling my 42 inch plasma in my garage that I worked really hard for to pay off some of my CC debt.

Savings has always been important hjm331 and your right that should be paramount right now but the thing is have some type of budget. Don' t have all the things I mentioned above and have $.65 cents left when all is said and done every month.

How many of us are waiting on our Income Tax Return to go out and buy a Flat Screen, Rims for the Car, a few items of "bling" etc., ? Nothing wrong with any of that but how much of that return is going into your savings acct ?

Like I have said before, how many payhecks is Society away from being in a disaster ?

That's why everyone should save up. They got caught up with all the luxuries in life and didn't think about losing their job. That's why I'm saving up every little bit that I can so I won't struggle when I have to pay my bills in the future in case I lose my source of income.

Brian23 I will assume that your young. The majority, not all mind you who have resorted to using their cards to make ends meet is because they are "living beyond their means"

When times were good society looked at their financial future as if the good time were never going to come to an end. "Why finance a $200K home when a $500k home is just a few hundred dollars a month more in mortgage?" Why get the Pontiac when the 5 Series is in reach ? Why get the Sears Suit when the Armani is what you want ? Who wants to have a Timex on your wrist when your neighbor has a Cartier ?

Point is most didn't or never thought about a recession of this caliber to come along so why not charge or finance and let those bills take care of themselves?

Now your company is coming to you asking you to take a 10% pay cut, stops matching your 401K, and raise, are you serious, a raise in order to keep your job unless you have taken the buyout and already are budgeting between your severance and unemployment until something else comes up.

And oh yeah, I still have those Credit Card Payments........................

I think what really started to kill consumers (in the credit world) was when they had to resort to CC to put gas in their car. When gas prices soared over 4 dollars, people had to start charging to get to work. I have a co-worker of mine that had perfect credit credit and great cards (BOA, Chase etc), her and her husband when gas prices doubled in months had to resort to CC over the summer to get to work everyday, than she had her 1st child in Aug. Today, with the medical bills and CC bills coming due, she had to close all her CC accounts and is on a 5-year payment history with them. She won't even look at her score cause she's so depressed with her finances. And than the hospital bills, she pays whatever she can every month (even if its only 20 dollars).

To me, it was stories like this that started this whole mess (not that it was there fault). When people couldn't afford gas anymore, was when they stopped buying things, which started the whole mess that we have today.

Sometimes that's easier said than done, hjm331, especially if you find yourself in a desperate situation. For instance, your child is crying because he or she is hungry and you don't have any money, but you have a credit card, most likely you will use it. Who's going to listen to their child suffer, I know I wouldn't. I'd use my card and worry about the consequences later. You can't feel sorry for some of these people who allowed greedy mortgage companies and banks to force them into a mortgage they knew going into it, they would never be able to afford, but people that have fallen upon hard times due to no fault of their own or because they lost their job, I have the greatest sympathy for and my heart goes out to them. I must say, financial disasters probably could be avoided if would handle our finances like our ancestors and save more than we spend, at the same time, banks and credit card companies wouldn't be as prosperous as they are, which I don't think would be such a bad thing.

Then they shouldn't use their credit cards if they do know that they can't make minimum payments.