Choose one credit card to pay more than the minimum balance each month. I recommend picking the one with the lowest balance to gain the emotional momentum of paying it off faster. Next, trim your spending. Start small, such as cutting out the daily cup of coffee. People should aim for savings to cover three months of expenses in case of an emergency or loss of a job.
People can start by creating a budget.
I hope people learn that savings are necessary-even in a good market. A Make sure you have a budget, and start building cash to create a cushion. Use retirement funds as a last resort. It would hurt people with good credit histories who could lose their jobs if the economy continues to slow. Many of these people can't afford the payments for Chapter 13.