I agree, things have gotten worse but I also dont think this downward spiral is over yet. If I recall isn't the national unemployment rate at like 9% now? It's very sad when you know more people who are out of a job than those in one. Things are tough, but I also think creditors need to be as debt free as possible during these hard times.

The BLS has the real numbers state by state.
http://www.bls.gov/LAU/

National stats: (It was at 7.6% last month)
http://www.bls.gov/cps/

My plans right now is to pay off my credit cards and put more money in my savings account. Right now, my savings is somewhat healthy. Another goal is not to obtain anymore credit cards. The last one that I got was late last year (August). It's not a good time to be getting even more debt.

I agree, things have gotten worse but I also dont think this downward spiral is over yet. If I recall isn't the national unemployment rate at like 9% now? It's very sad when you know more people who are out of a job than those in one. Things are tough, but I also think creditors need to be as debt free as possible during these hard times.

Thanks for the advice. I have decided to wait until the end of every month to see how much I have made that month and use half of it to pay off my debt and save the other half.

How does that sound?

Sounds good. A plan of action is smart, but you also have to remember to live.

I like your idea hjm331 but the bottom line is "how do you like it ?" You will be the one living your life and as long as your happy and you have piece of mind with your plan then all is good in the neighborhood.

Right now hjm331 all I have is my car note. No credit card debt. Since I've only had the car since August 08 I keep the miles low so in case I lose my job I will immediately start looking into selling it. Now obviously I will be looking for other work but I have to have some kind of contingency plan.

Try to weather this storm the best you can hjm331. If you can continue to keep on top of your credit like I know you will you will be okay when all this is over. Believe me your miles ahead of others at this time of your life.

I guess for my two cents

Thanks for the advice. I have decided to wait until the end of every month to see how much I have made that month and use half of it to pay off my debt and save the other half.

How does that sound?

If something happens and God forbid you lose your job, along with staying afloat is how much debt your in and how will the outcome affect you once this mess is cleaned up ?

Well, I was thinking of using all of my income to pay off my debt ASAP so that way I won't have to pay a lot of interest.

I guess for my two cents: cash is king and savings is something that has been lost on generations of Americans. The old rule of thumb is to have at least six months worth of bills in savings.

Try not to let the media scare you into making huge changes. I admit I have not been spending much money as I used to because we are in such strange times. However, I would continue to live as you always have. Spend only what you feel is necessary and make sure you are both paying down your debt but also saving some cash. And every once in a while, you can get yourself a little something something-that will help stimulate the economy.

Maybe one alternative is to consolidate all of your outstanding balances to the lowest rate card so that you don't feel guilty for carring a small balance and making small payments while you save.

I just wish the media would lay off a bit. Our economy depends on consumer spending, but with the chiken little adage they keep bringing to us daily keeps us from spending, so things get worse; it is cyclical.

hjm331 you are a smart young man. I'm still advocating putting some money away but why not push all discretionary income towards your credit card debt. not robbing Peter to pay Paul. How about halting leisure activities until your credit card debt is erased? Your still paying your car note and your still putting money in the bank at the same time. If something happens and God forbid you lose your job, along with staying afloat is how much debt your in and how will the outcome affect you once this mess is cleaned up ?

Smcc, you are correct but what I'm worried about is that if I pay off my debt in 3-4 months, I'm not going to have any money put away because all the money I had went to paying off my debt. Then, what if I need to pay my car monthly payment but don't have the funds to pay for it. What will I do then?

You are an astute young man hjm331. Crime will indeed rise and the "have nots" will look to the "haves" as an option to make ends meet. Paying off your debt asap takes priority over saving. Sure your still going to put some money away but why not lower your debt ceiling in the process and make that objective number one ? The lower your debt the more money left in your pocket, hence the more money to save.

Your also right in that banks will look out for themselves but they will still covet their best customers. Continue to pay above your minimum, keep your usage under 5%, keep paying your other bills on time and not give the bank anything to worry about as far as your personal money mgmt and they will not forget you when this storm passes. Realize hjm331 that although things look bad, 93% or America is still working and yes it could be worse i.e. 25% unemployment through the Roosevelt Administration, we as a country are trying to right our ship and survive.

President Obama admitted that it's going to get worse before it gets better. How are you preparing yourself for the worse? Well, some people believe that it can't get any worse than it already is. Consumers are already losing their homes, losing their jobs, businesses are closing down, etc.

Well, when I think about what President Obama has said, robbery comes to my mind. Crime rates and robberies are going to rise because there will be so many people desperate and needy in order to eat once a day. They will steal anything in their way to sell it and convert the currency into food for them and their families.

I can't decide if I should work on paying off my debt, or make payments of $50-$100 on each credit card so that I won't have any late payments on my credit report. This is a difficult decision to make since we don't know what's going to happen in the future. Should we pay off our cards and invest in something that we can use for purchases in the future or should we make payments enough to get through the credit crisis.

I was thinking of putting money away and saving it for the future when things get worse than it already is because there's a chance that ALL banks will lower credit limits which will reduce their losses. If something like that was to happen, you would have money saved up to pay your rent, some of your bills, buy food, and all the other necessities in life.

At the end of the day, this is business and the banks will NOT show you sympathy by harming themselves. It all depends on how much you depend and rely on banks to be there for you when you need them the most.