Christmas is a fast approaching and we all could use some good news.
However, do not expect any good news on the economic front.
The recession may be slowing down and the recovery may be speeding up.
However, a very significant factor which is still in the negative is unemployment.
As on date, one out of every six individual is unemployed in America.
Along with unemployment, underemployment is also a major problem.
People are being asked to work beyond their capacity for low wages.
This simply means that it is not time yet to stop worrying about debt problems.
You may not have been fired or asked to work for lower wages.
However, do not presume that it cannot happen to you.
Millions of people all over America are facing this problem.
Your savings will not last for long if you have to manage your essential expenses along with loan repayments out of the same.
Do not go by statistics and figures alone.
An increase in the growth rate may sound very nice but is of no use until and unless the effect trickles down to the last man on the street.
Firms may have started posting profits but the ordinary employees are yet to receive even a single raise.
In such a scenario, you should keep an eye on all debt reduction possibilities.
If your condition is not as bad so as to require a settlement, then you should at least tighten your belt to keep your debts well under control.
All it takes is a single financial emergency to throw your financial planning into disarray.
Keep your credit cards under control this Christmas.
If you have the habit of making impulsive purchases, then lock your credit card at home every time you take a walk in a mall.
This will ensure that each and every purchase will require a trip back home.
You will have to collect your card and return to finalize the purchase.
This will help you think in a calm manner and ask yourself whether the expenditure is worthwhile or not.
This is the best way to prevent your family from racking up unnecessary debts during the festival season.