Issue #2 - Recession and Rebate

There’s been a lot of talk lately about the financial system heading towards a breakdown, and just as much talk about whether we’re in a recession or not, and exactly what is recession.  At least to me, it doesn’t really make a difference to me one way or another if we use the 'r' word or not.  I think we can all agree the economy isn’t doing so great at the moment and it’s likely to get a little bit worse before it gets better.

What I’m more interested in is what can I do to make it easier for me to get through it.  Like Ana, I have to say I’m also not too worried about it since my debt is paid off, but I still think I’d be foolish not to prepare.

American Consumer News has provided a great article on ways to prepare for a recession, which covers things like how to make sure you’re the last one to get laid off.  Meanwhile, the government seems to be counting on interest rate cuts and tax rebates to try to turn the economy around.  While the interest rate cuts may help you pay less on your credit cards, most of us are more interested in the tax rebates.

So, the obvious question is what will you do with your tax rebate?  The government hopes you’ll go spend it and hopefully boost the economy.  However what’s good for the country, may not be what’s best for you, many are suggesting you use your tax rebate to pay off debt.  Debt Prison even suggest that paying off your debt may help the economy more than spending it, since a large part of the problem is lenders who have overextended themselves on issuing credit.

In the end what you do with your tax rebate is up to you, but with so many experts issuing warnings I personally plan to use the money to better my financial situation.