Not the time to panic, expert says

Foreclosures. Unemployment. Recession. With daily headlines screaming that banks are failing and stocks are falling, it's no wonder people around the country are worried about losing their jobs, their homes and their spending power.

But financial expert Pam Krueger says that now isn't the time to panic.

"Out of the 8,500 banks in America, there are some that are failing, but there are also dozens that are completely well-capitalized, don't need a bailout and are still making mortgages," Krueger said. "You'd never know that by reading the headlines."

Krueger, creator, executive producer and co-host of the PBS series "MoneyTrack," was a keynote speaker at the Pennsylvania Securities Commission's "Money Matters" conference, held Wednesday in Lancaster and yesterday in Harrisburg.

She was interviewed while in Philadelphia yesterday to film a segment for an NBC10 program.

As Krueger sees it, people need to start reassessing what they own and thinking about what they owe.

"You can't contol what's happening on Wall Street, but you can control your household balance sheet," she said.

This means analyzing your income, investments, savings and debts, and making sure that you are living within your means.

If you're looking to buy a house, now is actually a good time to do so, Krueger said. The average interest on a fixed-rate, 30-year mortgage is a relatively low 6.25 percent.

That rate could be higher, however, if your credit score is 640 or lower - which is why it's important to keep up with your credit report, Krueger said.

Though some people may worry about keeping their money in certain stocks, banks or 401(k) plans, Krueger warned against letting emotion dictate financial moves.

"That's the best way to lose money," she said.

She suggested that those concerned about losing money from their 401(k) plans should keep in mind the tax breaks and other benefits that come from such plans.

"Your 401(k) picks up funds every month, no matter what," Krueger said. "Let it be your best friend."

In general, it's best to remain calm during a crisis like this, Krueger said. Planning for the long term rather than the short term will help keep you afloat no matter what your economic situation is, she said.

"If you're feeling insecure about your job, start aiming and shooting to have three to five months' worth of actual paychecks saved in a federally insured bank account," she said.