Information Related to "Managing Your Finances in Tough Times: Five Steps You Can Take"
| Audio/Video |
These days, it's hard to find any good news about the economy. Stock markets around the world are unraveling. Home values have plummeted, and increasing numbers of families are struggling with mortgages they cannot afford.
Retirement accounts are shriveling. Grocery and utility bills are going through the roof. Businesses are failing, and new layoff announcements seem to come nearly every day. To say we're facing grim economic times would be a huge understatement.
"Many people are feeling totally helpless and stressed-out about what's happening in the economy. Even if they have a job now, there's a lot of anxiety about whether they'll still have one a few months down the road," observes Erica Sandberg, a San Francisco-based family money management consultant.
But while many feel blindsided by the economic downturn, it really was predictable, adds Michael Gutter, Ph.D., assistant professor of family financial management at the University of Florida. "As a society, we've been living way beyond our means and buying virtually everything on credit, including homes that are out of our price range," he says.
When the real estate market started its downward spiral a few years ago, many homeowners found themselves owing more on their homes than they were worth. They were in over their heads in debt and couldn't meet their mortgage payments, nor could they sell their homes. So they defaulted on their loans. This led to the failure of many banks, causing a chain reaction that continues to ripple through our economy.
Related Information on UCG Sites:
Table of Contents that includes "Managing Your Finances in Tough Times: Five Steps You Can Take"
Other Articles by Becky Sweat
Finances: