What will the year 2009 be like? I was asked to write a column for the 2009 Annual Forecast Issue of Rex Magazine, a magazine distributed to homes and business in Kitchener, Cambridge and Guelph.

In my article, I said that the world has changed.

Gone are the days of easy credit, at least for a while. In 2009 it’s harder to get a car loan or a mortgage, and credit card companies are raising rates and being more aggressive about collecting overdue balances.

Even worse, as the unemployment rate increases and people’s income declines, it will be even tougher to make debt payments.

What’s the solution? For 2009 it will be more important than ever to reduce debt, and to have cash. If you lose your job and have huge debt payments to make, you’ve got a problem.

That’s why the most important step you can take to prepare for a difficult year is to reduce your debt. If you have a good job you may be able to cut your expenses and focus on paying down your debt.

If you already have more debt than you can handle, and you are worried about your future, a “pre-emptive strike” may be necessary.

Readers of this blog will know that I am a big believer in consumer proposals as a strategy for dealing with debt.

By filing a consumer proposal now to deal with your debt you can put a plan in place before the stress of dealing with your debts becomes overwhelming.

Then, once your proposal is up and running, start saving money; build up some cash in your bank account, because in 2009, cash will be king.

For information on consumer proposals, or to ask any questions about what you can do to protect yourself in 2009, call at 310-PLAN (310-7526), no area code required, or e-mail us to schedule a free initial consultation.