As Possible Recession Looms, Money Management International Warns Consumers to Prepare for Layoffs
MMI suggests reducing debt as much as possible, particularly as credit card interest rates reach record-high levels.
STAFFORD, Texas, Nov. 21, 2022 (GLOBE NEWSWIRE) -- As more economists and business leaders talk of an impending recession, nonprofit Money Management International (MMI) says now is the time to focus on your overall financial health and plan ahead for turbulent times.
MMI suggests reducing debt as much as possible, particularly as credit card interest rates reach record-high levels.
Jackie Boies, Senior Director of Partner Relations at MMI, says, “If you’re already struggling with debt, you’re likely to have a more difficult time during a recession. Start making the necessary changes now.”
MMI recommends paying off high-interest debts and credit cards first. Don’t take on new debt, if possible.
Boies adds, “If you owe several creditors, have large outstanding balances, or just feel overwhelmed with all of your debt, my best advice is to reach out to a nonprofit counseling agency like MMI to work with a counselor and create a plan that works for you.”
MMI debt management client Bo Lindberg of Arlington, Virginia knows the scenario all too well. “I lost my job after having cardiac surgery. I worked as a Swedish contract linguist for the Department of Justice and when I returned, I was not assigned any more work. I had saved some money for some time that helped me financially, but it was hard. I was devastated and worried about my financial situation.”
Lindberg was able to pay off more than $43,000 of credit card debt with the help of an MMI debt management plan (DMP) that reduced his interest rates and monthly payments.
“MMI was able to negotiate a payment plan that was manageable for me. I am very grateful for their help!”
If a Layoff Happens
Even with unemployment benefits, money will be extremely tight until you find a new job. When in a financial crisis, one of the first expenses to suffer is often credit card payments, as essential expenses like food and shelter are prioritized.
Get ahead of the issue by contacting your creditors directly to let them know you’ve been laid off from your job. Many creditors offer short-term hardship programs that could significantly reduce or temporarily suspend your payments. However, interest may continue to accrue. You may not be penalized for falling behind on payments, but your balance may continue to increase.
Make an honest assessment of your finances. How much do you have in savings? What are your living expenses? Where can you cut back? It’s important to create a detailed list of available funds and ongoing financial responsibilities and create an emergency spending plan to see you through your unemployment.
“I would also make an inventory of your skills as you search for a new job,” said Lindberg. “I wish I would have gone back to my previous profession as I searched for a new job.”
During the course of unemployment, there will be things you can control and things you cannot.
“It’s natural to worry about things that are out of our control, but try to focus your time and energy on the things you can actually do to actively improve your situation. Stay positive and stick to a plan,” added Boies.
About MMI
Money Management International (MMI) is changing how America overcomes financial challenges. MMI helps create, restore, and maintain a life of financial wellness through empowered choices. For over 60 years, our clients have achieved financial confidence through nonprofit programs that educate, motivate, and liberate. MMI inspires action by delivering expert professional guidance and timely solutions aligned with our client's goals. Experiencing a financial challenge? Find your solution 24/7 at 866.864.8995 and MoneyManagement.org.
For reporters looking to interview “real people” for stories, MMI has created a group of nearly 200 clients from across the country who are willing to share their experiences with the media, in the hopes of helping others challenged with debt. Our peer advocates have paid off over $9 million of debt and now serve as MMI ambassadors. Hear from them on MMI’s podcast, Long Story $hort.
To schedule an interview with Thomas Nitzsche and any of our MMI Peer Advocates, please contact [email protected]
Thomas Nitzsche Money Management International 404.490.2227 [email protected] Lori Geary Lexicon Strategies 404.551.2151 [email protected]