February 14, 2008
Publication helps consumers deal with economic hardship
WEST LAFAYETTE, Ind. - With incomes down, foreclosures up and a struggling economy, a Purdue University Extension specialist offers tips for dealing with financial difficulty."Right now we're seeing layoffs and some jobs moving overseas," said Elizabeth Kiss, consumer and family sciences specialist. "These aren't the only reasons income can be lost, however. Many times income loss can be associated with divorce, natural disasters, illness or disability of you or your spouse.
"If your income suddenly drops when you're not prepared, the number one thing is to not panic because there are options and resources available to help."
Purdue Extension experts have updated and released a series of fact sheets, "When Your Income Drops," with information about dealing with lost wages.
"When income is suddenly lost, it is important to start by taking a look at what assets you have and in what areas spending can be reduced," Kiss said. "The top priorities should be meeting basic expenses - paying for housing and buying groceries."
Once a prioritized spending plan is in place, Kiss said calling creditors to negotiate payments can be beneficial.
"Not all creditors will be willing to work with you, but with the slow housing market and slowing economy, many of them will do what they can to make things work," she said.
Another place to look for assistance is within the community. Many communities offer resources to struggling residents.
"You should take stock of community resources to see where help is available and whether or not you qualify," Kiss said.
For those who haven't yet experienced economic difficulty, Kiss said it's never too early to prepare for an unexpected income loss.
"The best thing to do is save and prepare in case something like this were to happen," she said. "We recommend individuals and families have an emergency fund with enough money to cover expenses for 6-9 months. It's also very important not to rely on credit cards if possible."
The Purdue Extension fact sheets are available online at https://www.ces.purdue.edu/extmedia/CFS/CFS-704-1-W.pdf or in print version by calling Purdue Extension at (888) EXT-INFO.
Writer: Jennifer Cummins, (765) 494-6682, cumminsjs@purdue.edu
Source: Elizabeth Kiss, (765) 494-8299, dekiss@purdue.edu
Ag Communications: (765) 494-2722;
Beth Forbes, forbes@purdue.edu
Agriculture News Page
To the News Service home page