What would The Crash do to me?

[id10t]

So 'splain this to me...

I work for the state, and the new jobs I am looking at are also state employment. I have a fixed rate mortgage. I do have some credit card debt, but not a ton. Have some money invested, but not a lot. Don't have a lot of liquid savings, but if I cashed out my investments I could pay off all of my CC debt.

What exactly would The Crash do to my financial status? I know that credit card interest rate would go up, as would costs for things like food and gas. But where else would I be affected?

Thanks!

[vash]

which state?

i also tried to live in my means. i work for the state also. i think the big hit would be if our pension disappeared. or if we get laid off..

[daepp]

In many states their pensions are totally underfunded.

[71T Targa]

What's a pension?

[tabs]

Why does one think that the Govenator of NY called after talking to a majority of the other Govenators Fed Chairman Bernake....to beg for an AIG BAILOUT....WHY BECAUSE THE PUBLIC EMMPLOYEE PENSION FUNDS WOULD HAVE GONE BK>

That was one of the talking points that the Politicians said, "The pension funds for our retired people will go to ZERO!"

The States will HAVE to do cutbacks of employees with the Police and Firemen to be the last to go....

[87coupe]

"What's a pension"
^ Exactly.

[masraum]

Originally Posted by id10t

So 'splain this to me...

I work for the state, and the new jobs I am looking at are also state employment. I have a fixed rate mortgage. I do have some credit card debt, but not a ton. Have some money invested, but not a lot. Don't have a lot of liquid savings, but if I cashed out my investments I could pay off all of my CC debt.

What exactly would The Crash do to my financial status? I know that credit card interest rate would go up, as would costs for things like food and gas. But where else would I be affected?

Thanks!

Well, I'm not any better off than you, actually, probably worse. I'm in the process of bailing myself out of ugly debt.

To me, the priorities should be,
1 Savings (enough for 3-6 months of bills)
2 no debt
3 investments

So far I'm working on 1 and 2 simultaneously. I've paid off a couple of things and have part of 2 credit cards left (one at 3% and one at 8%). I'm working on paying off the next credit card, but mostly focused on trying to get 3 months of bills in the bank. (75% of the monthly $$ suplus goes to saving and 25% goes to the next credit card). Once I get to 3 months of savings, I'm going to go to 50/50, and then once I get to 6 months of savings, I'm going to go to 100% credit card.

Once the last credit card is paid off, assuming no financial calamities strike, I'll go to accelerated payment of mortgage and savings/investing.

[azasadny]

My wife and I took a drive in the 911 last night and drove around a small island near us called "Grosse Ile" looking at all of the "For Sale" signs. Very sad... most of these people worked in the auto and associated industries and lost their job (like I did) and now have to find a new job and move. Nobody is moving here, so they can't sell the house and the bank gets it back. Very sad to see this "up close and personal" but I believe this is just the beginning...

[Dixie]

Follow this if you can. It's as simple as I can make it.

• Less commercial income = less taxes.
• Less taxes collected = less state revenue.
• Less state revenue = less state jobs.
• Less state jobs = layoffs.
• Layoffs = you have no job.
• Less commercial industry = less jobs.
• Less commercial jobs = you have no new job.
• No job = living off savings.
• Living off savings = short-term situation.
• Short-term situation = long term problem. No job, no income, no savings, no money.
• No money = hunger and poverty.

See? Why worry?

[jyl]

Depends on your state. Many states are feeling serious pressure in their budgets. Municipalities are having trouble getting credit now, states are not immune. Hiring freezes and, next, layoffs are likely. How senior are you, as defined in the civil service rules? That's something I'd think about.