USA Today has an article on how the current financial crisis is hitting segments of society normally not impacted during previous economic downturns. They call it "the perfect storm" because not only are we experiencing massive layoffs, but the stock market has lost around 40 percent and the largest asset most families own (their home) in now their greatest depreciating asset.
The experts cited say that many people caught in this perfect storm will never get out of debt and that at this point in the recession, it's better to cut back dramatically on your expenses and save for a rainy day, versus paying off debt. If you lose your income, you will quickly need to make decisions about how to allocate your savings.
For example, if you are less than 6 months late on a credit card bill, that's not a crisis. They have charged it off and you lose is your credit rating. This is not a catastrophe and if you have a good tool -- like The Credit Secrets Bible -- you can delete bad credit from your credit report.
However, if you are 6 months late on your mortgage, you have most likely received a notice of default and are about to lose your home. And if you are one month late on your car payment, you may be in jeopardy of losing your transportation to job interviews.