Yes its true! According to an article written by Dan Seymour of the Associated Press on Monday, the biggest short term risk to our economy is bad credit. According to a survey of 258 members conducted by the National Association of Business Economics (NABE) credit has replaced terrorism as the gravest immediate threat to our economy.

It almost sounds surreal but I actually agree with the findings of the survey. As we continue to deal with the 'credit crisis?, the issues have trickled down into our everyday lives at a record pace. The stock market being our first indicator, followed by the fact that 2 million people are expected to lose their homes this year to foreclosure. Even the big boys like Home Depot are taking the hit. Folks, real estate drives our economy far more than we would care to admit. Ask the car dealers, airlines, and other companies that depend on high discretionary income if real estate drives our economy. With less people able to tap cash/equity out of their mortgages through refinancing, Realtors not spending at a very high clip either, and the 100,000+ loan officers who have left the industry our entire economy is feeling the crunch. Builders are building less new homes being which means less work for the blue collar individuals ultimately leading to higher than normal unemployment rates. It is a serious trickle down effect.

Whoever thought that a few missed payments here and there would supplant Osama Bin Laden and his terrorist goons as one of the greatest risk to the U.S.A. I believe it goes back to my blog from last week about ?Was the Mortgage a Mistake?. The consumerism mentality of our culture has left us in a very tough position for now. In a perfect world maybe we should have purchased smaller homes with stable fixed rates and chose not to drive our gas guzzling oversized SUV?s. But who know the bottom was going to fall out so quickly.

Listed below are 5 tips I encourage you to use, so we do not continue to add to the threats bad credit is placing on our society:

1) Stop using the credit cards unless you can afford to pay the balance in full for that month. This tip alone will give you a raise in income by having your money work harder for you because it won't be spent paying high interest credit debt.

2) Pick up the book Smart Couples Finish Rich by David Bach. Married or single this book has some great tips on budgeting and other financial tools that will help you weather the storm and plan for the future

3) If you know you are going to be late contact your creditors in advance. Most creditors will be more forgiving of customers who are proactive about there obligations.

4) Don't run from your history. It is important to review your credit at least one time per year but twice a year is ideal. You can receive a free report at www.annualcreditreport.com it really is true knowing is half the battle.

5) If you have derogatory or past due accounts that are now collections and charge-offs try to call and negotiate settlements with the creditors. My company has created a script to help our clients with the calls to creditors.

Bad credit is not only a greatest short term risk to our economy; it can become the greatest risk to our personal quality of life as well. Today, credit is reviewed for everything from car insurance rates to homeowner's insurance rates. Let alone applying for a mortgage with low money down and attractive interest rates. Even the ability to get a cell phone with an affordable, economical plan is nearly impossible when you have poor credit. Some employers even view credit, so it could have an affect on what job you get. Don't let this happen to you!

If you have good credit by all means keep up the good work. If you have some credit challenges start working today to better your scores. Don't let the four-letter word FICO be your downfall, because you will feel like your financial life is under terrorist attack.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Are You Committing Foreclosure Suicide?
It is Possible to Stop Foreclosure? The Answer to that question is yes but here's what you need to know first Foreclosure rates are skyrocketing across America, and with the present state of the economy it's looking like things might get worse before they get better. A tough fact to face especially ... more...

Foreclosure Issues - Missing Payments, Credit Consequences, and Defiency Judgments
Homeowners facing a financial hardship, even before they begin missing their mortgage payment, seriously worry about the consequences of foreclosure. Their most common concerns are being unexpectedly kicked out of their home by the county sheriff and having nowhere to go, how bad their credit will ... more...

How Does Foreclosure Impact Your Credit Report?
How does a foreclosure effect your credit report is a perplexing question. This is because Fair-Isaac Company, who started the credit scoring system, will not share this information. What complicates the issue even further is that all the credit information reported is calculated into the ... more...

Reasons Why You Should Sell Before Foreclosure
Foreclosure is a problem that many people have been experiencing right now. If you are one of them, you would be now thinking of a solution for you to stop the foreclosure process immediately. One of the most practical solutions to your foreclosure problem is to sell before foreclosure. There are ... more...