recession/depression question

[rachelMcK]

Ignore the rhyming...lol

I've never been through a recession where I've actually had to fend for myself so I don't know what to expect. Could someone please explain what happens to average working joes who rent apartments and have debt??? What happens if you have a mortgage?

Thanks!

[Marie78]

I've been wondering the same thing, I have only been living on my own as an adult for the last 7 years. We rent and I am not sure how we will be effected and I am nervous about not having a food stockpile and my fiance doesn't believe me that we might need to start one now.

[monkeywrangler71]

Well, if you're a "working joe" you've pretty much got it made in the shade because you actually have an income and can pay your bills. All you have to do is grab your job by the scruff of the neck and hang onto it for as long as you can, no matter how much you hate it.

Once you've lost the job, you do whatever it takes to put food in the stomachs of the people you love, including standing on the side of the road with a sign that says "will work for food". When I was in my early twenties, paper routes and snow shoveling were the jobs of grown men with families to feed rather than used for pocket change for kids. You eat what's cheap (or free) and if necessary you go on welfare and further into debt. You pay your rent or your mortgage until you run out of money and credit, then you squat until they kick you out. Then you move in with your parents if possible, or you're homeless.

Hopefully by then, it ends. You get a new job, pay off the bills and start over.

People have an amazing ability to adapt to the most extreme circumstances. No matter how hard it gets, you can be sure that someone somewhere has managed to survive much worse.

[mommy4ever]

I've not been through recession as an adult, but remember as a child. It can be stressful. I remember mortgage interest rates were in the 20%!! Scary.

That isn't likely to happen.

Anyway, what it means for the renter, and others, is you might need to pull together. If you're single, or childless, find room mates, split the costs. If you have a family, double up the kids and find a boarder, university student that can't afford to live on their own. Pull together and buy bulk. Be prepared to take on an extra job for lesser pay. Or take on 2 or 3 1 or 2 day a week jobs to make it work. I'd not be too proud to make it work.

I'm not sure what a recession in modern day will mean. Government has different policy in place than it did the 30's when the depression occured. There shouldn't be a huge famine, or mass chaos. I don't see that occuring. In the 80's it meant for us, my dad was out of work, it was tight. all us kids did odd jobs to pitch in. I babysat, my brothers did yard care for $5 a lawn. My dad went back to school, into an apprentice program. It was tight, we had little "new things" but it didn't last forever either. Do what you have to, to be able to keep treading water if you have to, or find whatever way to climb out. If times get tough, that's the time to shelve your pride and take charge of your family and their wellbeing. (personally, I find that to be taking pride and doing what you have to to provide, some people find it humiliating to take a job below their qualifications, but what's the point of that??).

It never lasts forever. Many families find themselves in their own personal recessions and come out fine. Sure, it's hard, even devastating, but they fight and come out.

I'd think stocking up on some solid basics would be a good thing. Things you use routinely. Dont' stock up on things you'll never eat, it's a waste. have TP, dried goods such as rice, pasta, beans(if you eat them), nutritious canned goods, skip the junk, it's very pricey for it's nutritional value. Learn ways to help yourself. collect buckets from restaurants to grow plants in. Learn to container garden. Learn a skill so you don't need to outsource it. Basic plumbing, sewing, whatever, it's a barterable skill if times are tight.

I don't see this being a huge depression, a recession sure. But being prepared never hurts. Look at some of the mormon websites, they are a very useful resource, and they are willing to share that knowledge, so use what you can!

[PrairieRose]

The main thing is to just not add any new debt, work on paying existing debt off and build up a stockpile of food and an emergency fund. I don't think we're in for a 'depression' like we saw in the 20's but if things slow down a bit there will be more unemployment and interest rates will rise dramatically. In the 80's we bought a house with 12% interest and at the time that was a bargain. So just lay low, build up for emergencies. You'll be fine

[sdrjeolsen]

Rachel, as long as you have income, you should be fine. We went through a recession early in our marriage and actually did quite well. The worst part was constantly wondering if dh was going to lose his job when they downsized. As I remember, over 40% of the company's 35,000 or so employees were laid off.

On a brighter side, when people are w/o work, they have garage sles and you can pick up some great stuff that, unfortunately, people are desperate and have to sell. Also since less people are buying, demand goes down as do prices in general. So if you have some spare cash, you can get some great deals on things.

I agree with PrairieRose, pay every penny you can on debt. When the stuff hits the fan you will be in a better position. The great thing about people is that we always learn to adapt, no matter what situation we find ourselves in.

[larabelle]

You eat what's cheap (or free) and if necessary you go on welfare and further into debt. You pay your rent or your mortgage until you run out of money and credit, then you squat until they kick you out. Then you move in with your parents if possible, or you're homeless.

I agree. You learn to make do with what life throws at you and you pray, pray, pray for better times.