5 Financial Tips To Consider Should The U.S. Default

money

  • Pay down your own debts:
    • People with adjustable interest rate mortgages and loans will see their monthly payment increase because of higher interest rates.  If you can, make an extra payment or two to bring your balance down.  Also, if you’re paying high interest rates on your loans, it’s best to pay them off if you can afford to do so.  It’s wise to pay off loans with the highest interests rates first.
  • Don’t keep money that you’ll need in 5 years or less in stocks:
    • The stock market will nose dive should the U.S. default on its loans which means that stocks, bonds and treasury will also devalue.  You may want to keep your money liquid (cash), not stocks if you plan to use it in the next 5 years.
  • Rebalance and diversify your retirement portfolio
    • This is the best time to reevaluate and diversify your portfolio.
  • Put your best foot forward on the job
    • We all know that a good job is very hard to find in today’s economy.  If you have a good or a job for that matter, give 110%.  Make yourself valuable and irreplaceable.
  • Cut spending to build up your cash savings
    • Clear and simple – cut back on unwanted and frivolous spending.

MSNBC Business

Hopelly, our politicians will be able to work out their differences so there won’t be a default.  What are your thoughts on the looming default?

Leave a Reply