Create Your Personal Bailout Plan

BUILD UP YOUR CASH

Banks are continuing to be reluctant to offer basic loans to companies – and may be reluctant for a while. As credit remains tight, some businesses could continue to have trouble borrowing and have no choice but to begin cutting workers,
Nothing you do financially will help you sleep better at night than knowing you have money tucked away for a rainy day,

GO FOR A CREDIT FREEZE

“In a bad economy, the answer really is not to find more credit to use. It’s to make sure you’re able to make your payments and find ways to cut back and live within your means,” said Eve Pidgeon, a spokeswoman for GreenPath Inc. in Farmington Hills, Mich.

The idea, she said, is to live literally according to your wage.

Yet you may not want to close all your credit cards. As credit could be harder to get, some experts say you might want to keep accounts open for true emergencies.

DO A ROUND OF LAYOFFS

Gail Perry-Mason, a Detroit financial author, said people need to lay off premium cable channels, extra services on cell phones, new video games or rounds of golf.

“Our household is a for-profit business, not a nonprofit,” said Perry-Mason, a Detroit broker and coauthor of “Girl, Make Your Money Grow!” ($12.95, Broadway paperback).

Perry-Mason said mothers and fathers need to set limits on how much to spend entertaining their children, as well.

“They will rob you blind.”

TRACK EVERY DOLLAR

the best thing that consumers can do now is to start tracking their spending for 30 days.

“This will give you a clear idea of where your money is going and put you ahead if you need to seek help from a credit or mortgage counselor, or even a bankruptcy attorney,” Detweiler said.

Do not wait for your monthly credit card statements. Call your card companies to monitor your charges and see how close you are to the limit

TAKE INVENTORY

Times might be tough, but we all have something that we can count on to bring us joy. Really funny friends, a great handbag bought when times were better, warm hugs, a leftover birthday gift card, two consecutive green lights, the best dog on the block.

Some of these things can matter more than ever now. Take inventory.