GOOD GRIEF! Could anyone have even guessed how fast the economy has slipped in the past few months? The country is witnessing a meltdown of gigantic proportions; a once in a life time phenomena.

With all the uncertainty, what action should credit union members take? First, closely scrutinize your budget and treat your money like it is a business. No one knows how long the recession is going to last. One thing's for sure; you'll need to tighten your belt. Start by reviewing your spending habits with your spouse. Make sure both of you are on the same page financially.

If you are single or a single parent, there should not be any sacred cows as you go through your budget. You are the only source of income for your kids. Let them know if you have to cut back on spending.

You can also search KaiPerm's website for helpful and trusted resources that can help you improve your planning and show you how to save money.

Cash is King! So take a look at your current debt. You may have an opportunity to reduce interest rates on your loans. Check your loan paperwork and check the interest rates on your auto, credit cards and even your residence. Some experts are expecting that 30 year mortgage loans may drop another full percentage point.

KaiPerm's 15 year home equity loan rate is a fixed 4.50% (as of January 6). Also consider a US Department of Agriculture loan. The agency has money available for low/no down payment loans for home purchases outside the designated urban growth boundaries. It's a great way to buy your first home. There are some income restrictions. FHA is also making 95% loan to value loans.

Keep your credit rating up. Many credit cards accounts can (and do) increase your interest rate if you miss even one payment on other loans you have. If you have a few extra dollars, make sure you payoff your high interest rate debt first. You will save money and avoid the expensive of high over limit fees and exorbitant late charges.

Do you have student loans? Make sure you know when interest is going to start up. Defaults on student loans can harm your credit rating.

Check out our website; go to Financial Resources then click Identity Theft, a webinar that will help you further protect your money from fraudsters.

Do your borrowing, saving or purchasing needs with reputable and well established businesses. Be cautious for getting "a steal" from a new or unproven business.

Buying opportunities are out there. It is a very good time to be buying from retailers such as electronics firms or a new/used car dealers. Retailers are ready and willing to "make a deal".

But don't expect a dealer to take your existing car in trade or even give you anything remotely close to its value. The new/used car market is devastated. You'll be lucky to even get an offer to buy it from the dealer. Many new car dealers have lost their reputable financing outlets. If your credit score is less than 700, you may not be able to go through a financing outlet.

KaiPerm has plenty of money to lend - get pre-approved before buying an auto. We lend money to fellow members and place more emphasis on character than credit scoring. And think about selling your car privately or donating it.

Last, don't give up hope. Will the economy get better? Sure, it will, but some experts think the economy will be depressed for at least one year and probably longer. That's why you need to talk with us to help you through the difficult times. KaiPerm is here, we have great savings rates, low borrowing rates and a strong desire to be the most trusted financial resource you have.

Do you need financial counseling? Give KaiPerm a call. We can and want to help you. My direct number is 503-813-3258.

Happy New Year