Aftershock: Protect Yourself and Profit In The Next Global Financial Meltdown, Second Edition

What Else Can I Do to Protect Myself?

In addition to the three big rules (stay away from stocks, real estate, and long-term, fixed-rate investments), there are a number of other actions you can take to avoid losing money in the current Bubblequake and coming Aftershock, including those outlined in the sections that follow.

Dealing with Credit Cards, Student Loans, and Other Debts

Many credit card balances are adjustable-rate loans. Even fixed-rate credit cards have clauses in their contracts that, under certain circumstances, allow interest rates to increase. When interest rates go up with inflation, so will adjustable-rate credit cards, making interest on your debt very expensive. So the sooner you can get out of adjustable-rate credit card debt, the better. If the credit card balance is relatively small in proportion to your income level and wealth, pay it off now or as soon as you can. If necessary, cut back where you can and make as large a monthly payment as you can manage, so you can get out of credit card debt as soon as possible.

However, if your credit card debt is quite high relative to your income and assets, you might want to consider not paying your credits cards at all. When the bubbles pop, many credit card companies will go out of business. In fact, with the new credit card laws going into effect, credit card companies will go out of business even faster when so many people cannot make their payments. After the bubbles pop, you will likely still owe your credit ...