Financial crisis can hit anyone if you are not careful with how you are handling your credit. Some might think they are too big to get affected by any credit crunch. Think again! Remember the 2008-2009 Global Financial crisis? People were fired from their jobs, some lost their houses and banks were on the verge of insolvency. Global economic growth just plummeted despite all the flowery promises ushered in by Globalization. Efforts to revive growth has not yielded many positive results even after a decade, especially for the developed world. A credit crunch could be averted if you know these tips and put them into use.
First and foremost, you gotta have Cash! Banks would be reluctant to fill those liquidity gaps at the time of a credit crunch. Make sure you have a war chest at all times. Interest-bearing credit instruments might fail you during a crisis but you can rely on cash at all times. Sell that car, property or gold which is just lying there without yielding any profit. Convert those inventory into liquidity and build that war chest of yours. You should sell those low yielding shares and just put that money into better use, save it for future.
You must have already taken loans from banks and worried about your credit-worthiness. At times of a credit crunch, banks might be hostile and would not lend you money for emergencies. At the time of a credit crunch would you be able to survive it? Seriously think about it! I would say, develop a closer relationship with your banker. Offering "oral tricks' is always beneficial, you know what I mean- give them what they really want. So that when you need credit, you can persuade them to give you money since you are an important customer for them.
During a credit crunch and financial crisis more than your personal wealth, your business would be the one suffering. You should assess your debt and profit at all times, always be prepared for a crisis situation. Your business should be able to survive the credit crunch, bank on better products, better customers and better deals. Every step you take should pass the test of a future crisis scenario.
Keep an eye out for potential investments and acquisitions at the time of a crisis. Most businesses would be suffering and might sell their assets at low prices for liquidity. Your business must be going strong since you have taken the steps anticipating this crisis. Buy the vulnerable assets and grow your empire.
Now, you gotta expect the worst case scenario. Crisis time is here and you look at your credit, your war chest and your assets. Bills are due, payments are defaulting and your business is not doing that well. Go back to our first tip right now and just sell everything you could! Sell your kids' vital organs on the black market or the darknet. Somehow get some money! Threaten transgenders that you will reveal their X-rays online and reveal their sex in social media. Then just take all that money and make those emergency bill payments then invest the rest in online blackjack and poker. Yes! You heard it right. What is there to lose? You can get easy money at all times irrespective of the economic situation. Find a good online poker and blackjack website, you will find immense opportunities to multiply your cash.