Well we’ve made it to the end of another year. Thank goodness for that! The last week has certainly been rocky – watching the Dow move up and down like a super ball! (I hope you remember the super ball days!). So, what’s ahead? I can’t predict whether GDP will hold steady or go down – we’ve basically learned that predictions are only valid if they come true! There are some items that are easier to assess and predict.

Its reported that Capital One and Discover have begun to trim available credit from their current card holders – particularly those who have zero balances on cards. The concern is that if the economy softens, the card users will take cash advances and run up the cards on a more pressing basis and then default. So, what does this mean in the bigger picture? Here’s my take: As soon as Discover and Capital One aggressively pursue this course – the other card companies will follow suit – because they won’t want to be holding the bag. This means we very well may see a major tightening of consumer available credit in 2019. Once that occurs, consumers will not have the available credit to make purchases – and then Consumer Spending will fall. And Consumer Spending is what drives GDP and jobs – so if that begins to fall – then we are looking at that nasty “Recession” word.

What should you do? Well – first, if you’re carrying a lot of credit card debt – it’s a nasty mistake anyway to leave yourself with no savings because every disposable penny is going to pay the credit cards. If you’re there – you should take action to get rid of the debt. If your credit card companies cut your available credit down to $10.00 more than you owe – then in that case – (even if you’re not convinced you should otherwise have gotten rid of the debt) – you certainly want to get rid of the debt – since you won’t have the benefit of using the cards! If you’re one of the many card holders whose credit is taken away and you’ve never even missed a payment – I consider getting rid of the deb to be fair game – as in “do unto others!”

If you’d like to learn how we resolve debt – outside of bankruptcy and using bankruptcy – as well as how to address Tax issues – we have a terrific seminar coming up on Wednesday, February 9th. Of course, it’s FREE and you can lean more and sign up by clicking below.

Most important – have a safe, Happy and Healthy New Year and let’s make 2019, the year we come together.

Best wishes,