Five Steps to a Successful Phone Interview

If your resume did its job and sold you for the position you want, the next step is usually a phone interview with the employer. This phone screen usually takes place with a company recruiter or HR staffer to prequalify you for an opening. Since your attitude and answers can either move you to the next round or signal "game over," you want to be ready before you get that call.
Here are the five required action steps to take during your phone screen to help move you forward to that all-important, face-to-face interview:
1. Brand yourself.
You're not the only candidate being called. A lackluster performance will get you quickly scratched. If you can differentiate yourself from the beginning, you'll rise well above your competitors. One of the surest ways to accomplish this is to develop a personal branding statement of your own. Also called a Unique Selling Proposition, this is a short sentence that describes who you are, your biggest strength, and the major benefit that you offer your next employer.
A personal branding statement (or USP) might be: "I'm a seasoned Project Manager whose strengths in identifying and solving problems have saved my employers over $10 million while completing over $35 million in projects during the past nine years."
A branding statement like this makes you memorable because it's focused and it offers a benefit (saving $10M). If you develop a branding statement, or USP, that clearly can identify who you are and what you can bring to an employer, you've caught their interest and separated yourself from the pack.
2. Show enthusiasm.
A positive attitude can go a long way in your marketing efforts. This is your opportunity to shine on the phone, so take full advantage. This is especially important if the call came at an "inopportune moment" and you feel caught off guard. If this is the case, remember, you're not the only candidate they're talking with. When the call comes, congratulate yourself, knowing that you were one of the few who did make the initial cut. Now it's time to put on your "game face"; join the conversation with pure enthusiasm and demonstrate the conviction that you are a top candidate for this job.
3. Listen and answer carefully.
One of the major complaints from employers and recruiters about candidates is that too often the candidate doesn't answer the question being asked. Since you're on the phone, this is especially critical because you don't have the advantage of visual cues such as eye contact or body language. Listen carefully to the question being asked and answer that question only. Don't ramble or try to anticipate the next question, or you may talk your way out of the next step -- a possible job interview.
4. Flatter them.
It pays to do some research on any company you apply to. After all, the question, "Why are you interested in us?", is going to come up. Therefore, it makes good sense to have your ducks in line before the call and to be ready to mention why this company impresses you. Don't be bashful. Mention the product line, their superior management, their unique marketing approach, etc. Make sure you have something positive to say about them.
5. Close.
At the end of the phone interview, if you would like to proceed and talk further with this company, take the initiative and ask what a good time might be for scheduling a face-to-face interview. If you feel uncomfortable asking that, then ask this simple question: "What's our next step?" This should eliminate any confusion and set the stage for your follow-up date, should you not hear back before then.

Keywords Give Your Resume an Edge

In many employers you may be targeting for a job search, your resume will likely be screened by a computer long before it hits human eyes. Keywords can help your resume beat the system.
Companies use this method to help filter the thousands of resumes received into piles for qualified candidates and unqualified candidates. Unfortunately, this separation process isn't perfect. Sometimes, qualified job candidates are filtered into the wrong pile -- ending the job hunt before it even began.
Get Cues from Basic Research
Recruiters strongly suggest your resume includes keywords. Keywords are significant or memorable words that pertain to a subject utilizing bullet points. Recruiters say you can discover a company's keywords with some basic research.
Before structuring your resume, you should cruise through the company's corporate web site and take note of the listed values, mission statement, and objectives. Then, scope out the text of your preferred job listing and take note of specific qualifications, skills, required years of experience, or detailed phrases.
Chances are that the website will have an "about us" and a "careers opportunity" section that will provide clues to help you find what the company is looking for in a new employee.
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Some Words Have More Value
If a company continually mentions their business' relationship with a community, add any community service positions that you have held on your resume. Including these activities can help you catch the machine's attention. Odds are those are the words programmed into the company's resume screening databases.
The more words the scanner recognizes, the more value is attached to the resume.
Tips for Adding Value
Don't overdue it. Because so many resumes are being submitted, you want to make sure that your resume is a quick, easy read. Take your time and look carefully while researching a company so that you can filter out what the most important words and phrases are. You can add the strongest keywords into your resume without any excess baggage.
Try bold type, bullets. Once you identify the company's keywords you should find ways to build those words into your bullet points. When resume keyword searches were first introduced, college career services centers recommended listing keywords at the top of your resume. Recruiters tell us those days are history. These days, recruiters suggest bolding your keywords or an entire bullet point to add extra emphasis to your points.
Remember the cover letter. Some companies use keyword scans on cover letters as well, so be sure to add keywords to your cover letter when applying electronically.
Look for variety. Utilize the keywords so that they appear in all the forms that can be written. If you write that you have received a "master's in business administration" and refer to it again later on in the letter, write the acronym "MBA" to cover all the ways the machine may be reading your letter.

The New World of Job Interviews

The employment interview isn't what it used to be. While the vast majority of interviews are the standard face-to-face variety, technological advancements have made it possible for employers and applicants to connect quickly in other ways.
Some hiring managers conduct phone interviews during the early phases of candidate searches; others may request you meet via videoconference if you live far away. And, yes, certain companies even hold virtual job fairs.
Following are tips for success when participating in non-traditional job interviews.
The Phone Interview
Minimize distractions. Conduct the call from a quiet, private setting. You won't impress hiring managers if they hear loud pets, honking horns, or your clicking keyboard in the background. If possible, use a landline (which is often more reliable than cellular phones), and disable the call-waiting function.
Speak up. Because the interviewer can't read your facial reactions or body language, verbalize your thoughts. After the hiring manager completes a thought, say something like, "Yes, that aspect of the job sounds appealing" to keep the discussion moving. Speak with confidence and enthusiasm.
Have supplies handy. Keep your resume and cover letter at arm's length, as well as any company research you've collected. You also might prepare a bulleted list of speaking points or questions. Make sure a pen and pad are nearby for taking notes.
The Videoconference Interview
Mock it up. It's intimidating to be interviewed on camera. Calm jittery nerves by doing a trial run with a friend or family member. Record the mock interview and study areas where you can improve. Did you look at the camera, or did your eyes dart nervously around the room? Did you exhibit good posture or slouch? Rehearsing will help ensure you're polished at showtime.
Beware of busy backgrounds. Most video interviews are conducted at a videoconference site, your recruiter's workplace or an employer's satellite office. Wherever you are, remain the focal point by clearing the table of clutter. If you do the interview from home, choose a professional-looking, well-lit setting. In addition, make sure your computer's webcam and microphone are working properly a day in advance.
Dress to impress. Dress as nicely as you would for an on-site visit. And don't assume you'll only be visible from the shoulders up. More than a few jacket-clad candidates have unexpectedly been seated at see-through glass tables or stood up to reveal fashion faux pas such as jeans or shorts.
The Virtual Interview
Wear appropriate avatar apparel. An avatar is a computer-generated icon you create to represent yourself online. If you attend a virtual job fair on Second Life, a popular online community, for instance, your avatar should look professional. You don't necessarily need to don a virtual suit for an "in-world" corporate recruiting event, but don't show up as a flashy nightclub-goer, space alien, or vampire.
Message with care. When communicating via instant message on Second Life, focus on accuracy, not speed. Hiring managers will likely forgive a typo or two, but making a series of grammatical goofs will cause them to question your writing skills and attention to detail. Take a moment to proofread your message and steer clear of emoticons and cyber slang.
No matter what the meeting format, always send a thank-you note to those with whom you interview. Even when communicating with a hiring manager using high-tech tools, a traditional handwritten letter of appreciation will be well received.

Make Your Resume Stand out From the Pack

Make Your Resume Stand out From the Pack

Question: I have recently moved, and it has been tough finding work. I started looking for work back in April. What can I do to enhance my resume and land a job?-- Trying to Stand Out, South Bend, IN
Answer: So, what can you do to make sure your resume is selected from a stack that could be 400 deep? That's the challenge when it comes time to writing your resume.
The key is to make sure you write an accomplishment resume as opposed to a job-description resume.
Focus on Accomplishments
This is the single biggest mistake that virtually all job-seekers make: Most people write job description resumes. In essence, they describe not only what they did, but what anyone would have done. Here's an example:
Sales Representative, Szabo Industrial, Minneapolis, MN, 2003-Present
* Sold manufacturing components to clients throughout the Midwest
* Developed and maintained strong relationships with all customers
* Created call lists and scheduled in-person visits
* Managed personal budget and prepared reports
Now that may sound good, but the sad fact is that every sales rep in the history of Szabo Industrial -- or any company for that matter -- did those exact same things. The recruiting director will not say, "Wow this guy was a sales rep and he developed relationships with his clients -- let's get him in here."
The key to a great resume is to focus on what YOU specifically accomplished. What did you do that was unique, special, different, or distinctive?
Define Your Accomplishments
Think about your accomplishments -- both in terms of scope and results.
Scope: How big? How much? How many? How often?
Results: Did you grow sales? Did you save the company money? Were you recognized for your achievement? Did you create something new?
If you can guess from these questions, you get accomplishments through numbers, numbers, and more numbers. You want to be as specific as you can in everything you write.
A Better Example
Let's look at a new version of the sample resume. Same person, same job, but a very different resume
Sales Representative, Szabo Industrial, Minneapolis, MN, 2003-Present* Sold $35 million in industrial products to more than 1,200 clients throughout the Midwest
Ranked second out of 21 national sales reps
Exceeded company-mandated sales goals by 19%
* Personally secured more than 350 new customers through dedicated cold calling and in-person visits
* Managed a budget of $75,000 annually -- decreasing spending by 18%
* Prepared dozens of comprehensive summary reports delivered monthly to national VP of sales
Sounds quite a bit better, doesn't it? Wouldn't you want to hire this person? I know I would.
Here's a great evaluation tip: If what's written on your resume can be written by the person who held the job before you or after you -- rip up your resume and start over.
Good luck!

Four Steps to a Better Job Interview

Here's a question I often hear: What are some things I can do to prepare for a job interview?
Answer: There really aren't too many things in life more awkward than a job interview. You're dressed in formal business clothing, sitting across from a stranger. This stranger has the right to ask you anything from the most elaborate to the most mundane questions. And you have to spend an hour talking about nothing but yourself. Actually it sounds pretty similar to a blind date!
Just like a blind date, there are some definite no-no's you need to avoid if you want to make it to the next level.
1. Don't try to outwit or outguess the interviewer.
Most candidates go into a job interview thinking it's a contest where the goal is to defeat the interviewer in some type of battle of wits.
"Aha, Brad has asked me this question. Clearly, that is some type of trick question. I just don't know what the trick is yet. Here's how I would normally answer the question, but instead I should say what he probably wants to hear."
That thinking is when good interviews go bad. Sit back, relax, and pretend it is a conversation with a friend. Those are the best interviews.
2. Read the job description.
I call the job description the "cheat sheet" for the interview. Chances are the items listed on the job description will come up in the interview. For instance, if the job description says, "looking for creative problem-solvers" one of the questions you will receive is, "Give me an example of when you creatively solved a problem."
3. Have reasons for everything you've done.
Most companies conduct behavioral interviews. It means they are more interested in the hows and the whys as opposed to the whats. They want to know what makes you tick. An interviewer is not simply going to say, "Oh, I see that you worked as a sales rep in your last job. Cool."
That interviewer may spend about 10 minutes asking questions about the job: "What did you like about the job? What were your accomplishments? What were your biggest mistakes?"
And on and on. Be sure you have answers.
4. Ask questions.
There is nothing more damaging than not having a single question at the end of an interview. It shows that you have no curiosity or interest in the organization. Almost every interviewer will leave about five minutes at the end of the interview to answer questions. Make sure you have a couple. Two or three questions is appropriate, and they can be either personal questions -- "What do you like about working here?" -- or they can be business questions -- "How has the Internet affected your business?"
There you have it. Four quick ways that you can make sure you ace the interview and have the job offers rolling in. Good luck!

5 Ways to Keep Your Job During a Recession

While a recession may not be inevitable, the economy is showing slowed growth, and this could mean that some companies consider downsizing. Worries about a U.S. recession have many also worrying about their jobs.
You want to make sure that you can keep your job if times get tougher. Below are five things you can do to improve your chances of being kept on.
1. Come up with ways to cut costs. See areas of waste at your company? Point out practical ways to improve efficiency and cut costs in the workplace. Obviously, now is not the time to ask for a raise. Bonus: If you can see a potential new revenue stream that requires a low (or better yet, no) cost investment, get that going. Someone who is innovative at stretching resources is more valuable than someone who does nothing more than consume them.
2. Boost your visibility. You want to be noticed in a positive way. Make sure you are on time to work, and that you limit your vacation time. Also, if you are making solid contributions, make sure that they are noticed. You don't have to be obnoxious about it, but you should make sure that your boss is aware of what you add to the company. You want to be known. The first people fired are those with a negative impression. The next to go are those that are unnoticed and therefore expendable.
3. Go beyond. Look for ways to go beyond what you've been told to do. Volunteer for additional tasks. But be careful! Don't volunteer for more than you can handle. You want to be known as a go-getter who gets the job done well.
4. Improve your skill set. Are your skills obsolete? Take extra classes to brush up the latest skills. If career improvement seminars are offered at work, attend them. You want to show your employer that you are still viable in the workplace, and that you have the necessary training to continue doing a good job.
5. Watch your attitude. Now is not the time to complain constantly. If you have constructive ways to make the workplace better, present them in a professional manner. Do not whine or complain excessively. A reputation as a morale-killer can lose you your job.
And, because there's no guarantee that you will retain your job in a recession, no matter how hard you try, it doesn't hurt to be prepared. On your own time, update your resume. Also, make sure that you are still networking with old bosses, coworkers, and business contacts. Don't wait until you are laid off to keep your contacts and resume fresh. You will get better results if you are prepared ahead of time.

It's The Economy, Stupefying

It's The Economy, Stupefying

3 days ago Sun, 09 Mar 2008 09:00:00 PDT
The money experts didn't need to tell ordinary no-longer-working joes that the economy isn't good, but who doesn't appreciate a little validation? In the past several days, the most popular news stories (other than primary coverage) have been about some unwelcome all-time highs: auto repossessions (highest since 1998), job cuts (deepest since 2003), oil prices (highest ever), and foreclosures (highest ever).Not everything was a high—the dollar set a new low against the Euro before bouncing back like a bad check.
The news got so bad that the president comped to a "clear" slowdown while reminding people about the "booster shot" coming their way. The reminder put aside searches for "surviving a recession" long enough to revive impatient queries into "economic stimulus package" and "rebate checks." Indeed, even the term "irs spokesman john" came under Search fire, after one John Lipold confirmed in an AP story that IRS letters were coming—at a $42 mil cost—to explain how the checks were coming.
Search signs of a sick market have risen as well: "Stagflation" queries have more than doubled since January, and "recession" searches continue to rise unabated. It takes two negative quarters to have a recession, which the economy hasn't suffered, but the lookups speak to the perception. Questions about "what is inflation" rose +102% in the past 30 days, and people have been estimating the "inflation rate" on their own by checking an online "inflation calculator." Opportunists who scoured "foreclosure listings" and "government tax foreclosures" have dropped off, and "real estate investments" searches have declined.
Despite cold hard economic numbers, people have been been making do: figuring out whether to "rent or buy a house" (+235%), using a "cheap gas price finder" (+137%) to save at the pump, seeking "credit card debt relief" (+37%), and finding a way to support themselves, as the below list of employment and unemployment shows.
Equal Employment Opportunity Commission (+209%)
California Department of Unemployment (+201%)
Walmart Employment Applications (+189%)
Indiana Unemployment Uplink (+129%)
Wisconsin Unemployment Weekly Claim (+115%)
City of Houston Employment (+61%)
Temporary Employment Agencies (+24%)
USPS.com/employment (+10%)
City of Chicago Employment City Jobs (+9%)
Target Stores Employment (+8%)
Interestingly, number one is a federal agency which recently released a report denoting another misbegotten high: a rise in job discrimination complaints. And according to one source, a worsening economy likely begets more complaints. Forget booster shots—maybe radiation therapy's in order here.

Job Listings

Job losses' ramifications far-reaching

Employers in almost all sectors are postponing or canceling plans to hire new workers. If the hiring downturn continues, the ramifications for the economy could be major:
•Many analysts say a paucity of jobs will push America's economy into a recession, if it isn't there already.
•Consumer confidence – running at a low point – could continue to fall as Americans become discouraged about their job prospects.
•The Federal Reserve, which meets March 18 to decide interest-rate policy, will be under pressure for significant rate cuts – perhaps as much as another three-quarters of a percentage point.
"This could be a big turning point in the economy," says Mark Vitner, senior economist at Wachovia Securities in Charlotte, N.C. "It's clear that we are losing momentum, and weakness in the economy is broadening."
The latest indication of weakness in the job market came Friday, when the Labor Department reported that the economy shed 63,000 jobs last month. This follows a loss of 22,000 jobs in January. Although the actual unemployment rate went from 4.9 percent to 4.8 percent, economists say a more telling number is some 644,000 individuals who in January gave up looking for work and dropped out of the labor force altogether.
"The increase in disappointed workers, the most since 2003, is consistent with across-the-board reluctance to hire," says Andrew Stettner, an analyst at the National Employment Law Project in New York.
Problems in the job market come against a backdrop of yet more turmoil in the credit markets. Banks are asking hedge funds to meet margin calls as the hedge funds' financial assets fall in value.
In addition, the stock and bond markets reacted badly to an announcement last week by Ambac Financial Group, an insurer of financial assets, that it would try to raise $1.5 billion by issuing new stock. Ambac is trying to maintain its AAA credit rating.
On Friday morning, in an attempt to shore up the credit markets, the Fed announced that it would expand a special funding facility for banks. This would make it easier for them to borrow money.
"The whole point of the funding is they need to get some normalcy to return to the banking system," says Bob Brusca, an economist with Fact & Opinion Economics in New York.
Many in the credit markets are convinced that the Fed will drop interest rates sharply when it meets March 18.
"I expect a half-a-point drop, but the bond market is already pricing in a three-quarter-of-a-point drop," says Richard DeKaser, Washington-based chief economist at National City Corp., a Cleveland bank. "There is even a small possibility of a full percentage-point drop."
Even the prospect of a significant decline in interest rates has done little to help Wall Street. For the week, the Dow Jones Industrial Average fell 372.70 points to 11893.69. The Dow is down more than 1150 points for the year.
Despite the prospect of declining demand for petroleum products in the United States as the economy slows, the price of oil has continued to march higher. On Friday, it closed at $105.15 a barrel.
"There is no question high energy prices are an additional drag on the economy," says Mr. Vitner.
A close look at labor numbers seems to indicate that the downturn in hiring is hitting younger Americans the hardest. Over the past year, workers between the ages of 35 and 44 have seen their employment drop 2.1 percent, according to the Center for Economic and Policy Research (CEPR) in Washington. Even younger workers fared worse, as those between ages 20 and 24 saw their employment drop 3.5 percent. Teenage employment fell 6.2 percent.
"Layoffs are usually based on reverse seniority, so maybe someone who has held a job for 10 to 15 years holds on to their job when younger workers don't," says Dean Baker, codirector of CEPR.
Last month, layoffs spread beyond the housing sector and financial institutions. The durable-goods business lost 40,000 jobs. In the auto industry, 12,900 jobs disappeared. In the past year, employment in that industry shrank by some 75,500 jobs.
Short-term prospects for the auto industry are not good, since a strike is under way at Detroit-based American Axle & Manufacturing, Vitner says. The strike, which started on Feb. 26, is affecting 20 plants. Last Thursday, for example, General Motors said it would reduce work at eight facilities.
"The strike is putting more pressure on the auto companies," Vitner says.
Jobs in the retail sector are also being eliminated. Last month, 34,100 jobs were shed. The losses have been particularly noticeable for clothing stores, which have reduced employment by 29,500 jobs since October.
The drop in retail jobs may reflect a drop in consumer spending, after adjusting for inflation.
"With energy prices high, there has been a real drain on discretionary income," Mr. DeKaser says.
The loss of jobs won't alleviate problems in the housing sector. Until recently, a strong labor market was a main factor driving up incomes. Now, a rising tide of layoffs could exacerbate mortgage problems, DeKaser worries. "The labor market was the last bulwark on foreclosures," he says. "Increasingly, those on the margin will find the lack of jobs makes it all the more difficult to keep up with their house payments."

Dangerous cracks in the nation's job market are deepening. Employers slashed jobs by the largest amount in five years and hundreds of thousands of people dropped out of the labor force -- ominous signs that the country is falling toward a recession or has already toppled into one.
For the second straight month, nervous employers got rid of jobs nationwide. In February, they sliced payrolls by 63,000, even deeper than the 22,000 cut in January, the Labor Department reported Friday.
The grim snapshot of the country's employment climate underscored the heavy toll the housing and credit debacles are taking on companies, jobseekers and the economy as a whole.
"It sounds like the recession bell is ringing for the U.S. economy, although it is still faint," said Stuart Hoffman, chief economist at PNC Financial Services Group.
On Wall Street, stocks tumbled. The Dow Jones lost 146.70 points, a little more than 1 percent to close at 11,893.69. The Dow was down 370 for the last two days of the week.
The worsening situation will prompt the Federal Reserve to cut a key interest rate deeply -- perhaps by as much as three-quarters of a percentage point -- at its next meeting March 18, or possibly sooner, to help brace the teetering economy, analysts predicted.
The shower of pink slips was widespread. Factories, construction companies, mortgage brokers, real-estate firms, retailers, temporary-help firms, child day-care providers, hotels, educational services, accounting firms and computer designers were among those shedding jobs. All those cuts swamped job gains at hospitals and other health care sites, bars and restaurants, legal services and the government.
"Losing a job is painful, and I know Americans are concerned about our economy; so am I," said President Bush. "It's clear our economy has slowed."
The big question: Just how much? The weak employment report pushed an increasing number of private economists into believing the economy is probably shrinking now. Under one rough rule, the economy would have to contract for six months for the country to be considered in a recession.
The unemployment rate actually dipped slightly from 4.9 percent to 4.8 percent, as 450,000 people left the labor force for any number of reasons. Economists thought many people probably gave up looking for work.
"It stands to reason that a large share of the people left because they didn't feel like anything was there for them -- that the market was too weak to be searching for a job at this point," said Mark Zandi, chief economist at Moody's Economy.com.
To relieve persistent credit problems, the Federal Reserve announced Friday that it will increase the amount of loans it plans to make available to banks this month to $100 billion. The Fed already has provided a total of $160 billion in short-term loans to cash-strapped banks since December. The Fed, in another step, said it will make $100 billion available to a broad range of financial players through a series of separate transactions.
Crumbling employment conditions are feeding fears the economy will fall victim to all the stresses. Until recently, the positive forces of job and wage growth have helped to offset the negative forces hitting people from the housing and credit crises. Now people and businesses alike are more cautious, spelling more trouble for the economy.
"The debate should no longer be about whether there is or is not a recession, only about how deep it will be," said Nigel Gault, chief economist at Global Insight.
The elimination of 63,000 jobs in February was the most since March 2003 and marked the second month in a row of job losses. The last time the economy suffered two consecutive months of job losses was in May and June 2003, when the labor market was still struggling to recover from the blows of the 2001 recession.
"Businesses got cold feet, and when that happens the easiest thing to do is to put hiring on hold and wait until the dust clears," said Ken Mayland, economist at ClearView Economics.
Economic growth slowed to a near standstill of just a 0.6 percent pace in the final quarter of last year. Before Friday's employment report, many thought growth would weaken further -- around a 0.4 percent pace. Now, however, a growing number think the economy is contracting.
Bush's top economic adviser, Edward Lazear, acknowledged Friday that the economy may dip into negative territory in the current quarter. Lazear's comment was the most pessimistic assessment heard out of the White House. He would not discuss whether the White House believes the economy will actually fall into a recession.
The Bush administration was hoping the government's speedily enacted economic stimulus package -- including tax rebates for people and tax breaks for businesses -- will help bolster the economy in the second half of this year.
"I know this is a difficult time for our economy, but we recognized the problem early and provided the economy with a booster shot," Bush said. "We will begin to see the impact over the coming months," the president predicted.
Democrats, however, said more relief is needed now.
House Speaker Nancy Pelosi, D-Calif., spoke of charting a "new direction for our economy." Rep. Barney Frank of Massachusetts, chairman of the House Financial Services Committee, called for action to stem record-high home foreclosures.
The Democratic presidential contenders, Sens. Hillary Rodham Clinton of New York and Barack Obama of Illinois, blamed the job losses on what they believe are failed Bush policies. "The news should put to rest any doubts that our economy is in deep trouble," Clinton said. Obama said the employment news meant "more heartache and struggle" for Americans.
On the employment front, workers with jobs saw modest wage gains.
Average hourly earnings for jobholders rose to $17.80 in February, a 0.3 percent increase from the previous month. Over the last 12 months, wages were up 3.7 percent. With lofty energy and food prices, though, workers may feel like their paychecks are shrinking.
Spreading fallout from the housing and credit troubles are the main factors behind the economic slowdown. People and businesses alike are feeling the strains and have turned cautious. Adding to the stresses on pocketbooks, budgets and the economy: skyrocketing energy prices. Oil prices, which have set a string of record highs in recent days, now top $105 a barrel. Gasoline prices have marched higher, too.
All those problems are putting consumers in a gloomy state of mind.
Consumer confidence sank to a new low of 33.1 in early March, according to the RBC Cash Index. That was the worst since the index began in 2002.
To help shore up the economy, Federal Reserve Chairman Ben Bernanke signaled last week that the central bank is prepared to lower interest rates again. Economists are now predicting a deep rate reduction by the Fed on or before its regularly scheduled meeting March 18. The Fed, which has been slicing the rate since September, recently turned more forceful. It slashed the rate by 1.25 percentage points during just eight days in January -- the biggest one-month reduction in a quarter-century.

The Seven Deadly Sins That Lead to Debt

Financial sinners won't have to wait for the afterlife to be punished for their various misdeeds. Plenty of consequences await in the here and now.
Presented with choices daily, human beings can lead chaste and charitable fiscal lives. Or they can succumb to fleeting temptations and fatal traps.
So choose to commit these deadly sins -- or work to bring a little temperance into your spending.
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7 deadly debt sins:
Envy The rich and famous luxury items are accessible now more than ever -- and without the wealth they once implied. With more and more people sporting expensive goods, it's easy to feel left out and far behind.
"The income disparity has gone up considerably, and what has happened is that it has changed our consumption patterns," says Ronald Wilcox, professor of business administration at the Darden School of Business, University of Virginia and author of the upcoming book, "Whatever Happened to Thrift? Why Americans Don't Save and What to Do about It."
Envy colors our perceptions. "What we decide is reasonable to consume is what we view being consumed around us," he says. "But because income disparities are so incredibly unequal, what we view around us really is beyond our ability to afford."
Consumers can get caught up trying to keep up with the Joneses or the upper-middle-class families they see on TV, believing they should own the same things others own.
"The problem with this scenario is that living like the rich doesn't last that long. And if you consider appearing in bankruptcy court as being famous, then you have achieved half your goal," says Terry Rigg, editor of Budget Stretcher, a Web site for the frugally minded.
Forget that pride goes before a fallPride can get in the way of preparing for worst-case scenarios.
People tend to feel overly optimistic about their ability to pay back debt, stay out of harm's way and maintain perfect vehicular performance indefinitely.
All human beings suffer from overconfidence -- but Americans more than anyone, says Ronald Wilcox, author of the upcoming book, "Whatever Happened to Thrift? Why Americans Don't Save and What to Do about It," and a professor of business administration at the University of Virginia.
"Our nation has seen great benefits from the confidence to take risks. Risk-taking built Manhattan. But there is a dark underbelly," he warns. "There are some winners and they do great things, but there are a lot of losers. And one of the risks that people take is spending all their money now and not saving for a rainy day."
Incredible though it may be, cars do sometimes need repairs, cavities need to be filled and surgeries may be required that insurance doesn't completely cover.
"We hear it all the time, but everyone has got to have an emergency fund. It's not if it happens, but when," says Gail Cunningham, senior director of public relations for the National Foundation for Credit Counseling.
Be slothful with financesFinances tend to be complicated and require some mental manipulation of the most dreaded of all things: numbers. Failure to pay attention to loan terms and due dates can have severe consequences.
A survey for Bankrate.com's Financial Literacy series last year revealed that 34 percent of homeowners had no idea what type of mortgage they had -- whether it had a fixed or adjustable rate.
"I like to use the term 'financial complacency' to describe people that never really take the time to get the big picture of their finances," says Terry Rigg, editor of Budget Stretcher Web site and newsletter.
We prefer the term "sloth."
Avoidance is easy; paying attention is hard, especially when confronted with unpleasant facts like a hefty credit card bill or struggling to learn something new like investing basics just to enroll in a company-sponsored retirement plan.
"Americans don't really understand parts of those plans," says Wilcox. "This is probably due in part to Americans' reduced interest in mathematics relative to the rest of the world. Americans don't study it as intensely and they don't really understand the benefits of compound interest."
Get greedy when borrowingWhy buy an economy car when you can get a loan for twice as much and ride around in style?
Over-buying (read: greed) is a trap into which consumers can easily stumble.
A dollar is not always a dollar in our minds, says Ronald Wilcox, professor of business administration at the University of Virginia and author of the upcoming book, "Whatever Happened to Thrift? Why Americans Don't Save and What to Do about It." Some days a dollar will be more valuable to you than others.
Often when making big purchases, the price seems so overwhelmingly high that smaller add-ons or upgrades start looking like great deals in comparison.
"What you're doing is pairing the smaller purchase with the bigger number and all of a sudden it looks reasonable in comparison when on any other day you would recognize this as a really bad deal," says Wilcox.
"Marketers are aware of that, so they will add on lots of small items -- like warranties for instance -- things that have huge margins that they can make a lot of money on," he says.
Rationalizations could include, "Well I'm already borrowing $10,000, so what's another $3,000?"
"Learn not to buy on impulse and plan every purchase carefully. If you don't have the money now -- save until you do," says Terry Rigg, editor of Budget Stretcher, a Web site and newsletter.
Feel wrathful at everyone but yourselfBlame others for your own financial missteps. That way you never have to learn anything new.
To the peril of individuals, lenders won't cut you off when you've had enough. Criminal nondisclosure of loan details aside, lenders aren't in the business of making sure you save money and don't overspend.
"The savings crisis and the household debt crisis are directly related to each other," says Ronald Wilcox, author of the upcoming book, "Whatever Happened to Thrift? Why Americans Don't Save and What to Do about It," and professor of business administration at the University of Virginia.
"We wouldn't see foreclosures go up as quickly if people had a cushion of savings."
So wrath, when targeting others, is often misdirected. Developing a strategy for your finances is a personal responsibility, says Wilcox.
"On the corporate side of things, companies can do things that can make it easier for people to figure out how to save and save in an effective way," says Wilcox. "And the same goes for the government. They can make it easier for people, but can't force anyone to do anything."
For instance, companies can automatically enroll their employees in their retirement plans, but participation in a savings plan can't be a condition of employment. Similarly, the government provides tax incentives for saving in retirement accounts such as IRAs, but you can't be thrown in jail for not taking advantage of it.
To avoid messy situations, develop a budget with both savings and debt pay-down strategies -- and stick to it.
"It's much easier to tell yourself and your kids 'no' if you know what the spending limits are. Everyone in the family should know that they can't get everything they want because the money is just not there," says Terry Rigg, editor of Budget Stretcher, a Web site and newsletter.
Be gluttonousYou deserve that cookie so go ahead and eat it and maybe a couple more for good measure. While you're at it, buy the bedroom set you can't afford but deeply desire.
As a nation, the United States is both plainly fat from eating too much and overstuffed in the materialistic sense. The message from society in general can sometimes be: You work hard, so splurge.
It's very possible to have a house full of stuff and no money. It's also possible to be extremely overweight and ingest no healthy nutrients.
Just like eating food for no good reason other than the fact that it is set in front of you, people buy stuff just to buy it.
"It's so easy when you're in a mall to start buying things on impulse. They're very attractive and all shiny and new -- especially when they're on sale," says Dave Jones, president of the Association of Independent Consumer Credit Counseling Agencies.
"People will react to a sale item -- 60 percent off -- and buy it when they don't need it or want it."
Big-box stores are vast dens of temptation, offering lots of everything at sale prices.
"People buy huge amounts of stuff and think they're saving money. But what happens is that it just takes up space, takes years to use up or it just spoils," Jones says. Let lust lead you into spendingWhat can a little coveting hurt if no action is taken?
Lust can take many forms. Stereotypical but true, it would be hard to find more than a handful of women who hadn't longed for a particularly fetching pair of shoes or other frippery on occasion.
As for men, one need look no further than the swimsuit edition of a popular sports magazine or the covers of various lad mags and other even more risqué publications that grace the newsstands.
That particular facet of lust was so vexing in centuries past that it was widely believed the afflicted would suffer greatly in the afterlife.
That facet of lust often does contribute to debt -- a contemporary hell -- in the modern day.
"Pornography is a very large industry, but it is hidden," says Stuart Vyse, author of "Going Broke: Why Americans Can't Hold on to Their Money."
"The fact that it is hidden makes it hugely popular because you can engage in it without anybody knowing."
And the Internet has made it very easy for people to indulge with little immediate consequence.
According to Vyse, it's estimated that Americans spend between $10 billion and $13 billion on adult entertainment.
That's a lot of money that might be put to better use in retirement accounts across the country.

EARN A PROMOTION

If a promotion is one of your goals for the next year, are you doing everything you can to make it happen?
It would be nice if hard work and talent would automatically lead to a job with more pay, more responsibility, and a better title. But in most cases, it takes more than that to move to the next level.
Make Yourself Known
Look at the job you'd like to have a year from now. Who selects candidates for this position? Who does that person work with and ask for advice?
"Then you systematically sit down and think about how you're going to make contact," says Helen Harkness, founder of Career Design Inc., in Dallas. There are lots of ways to do this. You can volunteer to serve on a committee with the people you need to know, for example. You can forward them articles or information that relate to their expertise.
Help Your Boss Succeed
Often, your boss is the person who will decide if you'll be promoted. But even if not, your boss will almost certainly be consulted. So impressing your boss is a top priority.
Marianne Adoradio, a recruiter and career counselor in Silicon Valley, suggests focusing on your company's key goals, then talking with your boss to find out which are most important in your department. "It's really important to be aware of what is going to make your boss successful, what is most important to him or her."
Start Doing the Job
You don't want to stage an office coup and start making personnel decisions that are your boss' responsibility. But you need to show that you can work at a higher level than your current position.
"People are easily promoted when they show that they can already do parts of the job they want to move into," says Steve Levin, principal of Leading Change Consulting & Coaching, in Portola Valley, California. "If you want to move from being a manager to a group manager, start taking on responsibility for what a group manager does. Start thinking like they do."
Then you can make the case that "I'm already doing the job; I just need the title."
"That's pretty irresistible to your boss," Levin says.
Have a Plan B
Many people think there's a system in place at work that will take care of them and their career path, Harkness says. "They expect it to happen 1-2-3, automatically. They do the right thing, and they're going to get that promotion. It doesn't work that way."
In fact, Harkness says, it can happen that "you do everything you're supposed to do and it doesn't work." It's important to understand that the workplace is uncertain -- and to know what your backup plan is if you don't get the promotion you want.
If the promotion was a stretch and your boss is encouraging even while turning you down, it may be worth spending another year gaining experience. But you may also want to explore career options outside the company.