How would the 'fiscal cliff' impact consumers?

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I wanted a big deal I -- comprehensive -- I wanna see if we can.

Deal at least for the foreseeable future provide certainty to businesses.

And the American people so that we can focus on job growth.

So -- were also investing in the things that we need.

Right now what I want to make sure this is the taxes on middle class families don't go up and there's a very easy way to do that we could get that done by next week.

Good morning on -- -- many thanks for joining us on this fiscal -- the addition of the the -- -- today.

We're getting explain what it is and what it means to you -- could happen by the end of the year -- history the president -- -- yesterday his first news conference since being reelected.

And he says yes it's a big deal and it is -- deal take a look at the big board on Wall Street.

We even down -- 700 points since the president was reelected in all this fiscal cliff talk.

Came into the arena once again so people are nervous -- investors selling stocks not sure what -- to their tax code is going to be.

Come January wine and we're just bracing for this potential.

Fall off so let's talk about it with Adam Levin joining us now on set the co-founder and chairman of identity -- 911 and credit dot com C certainly -- your finger on the pulse of the consumer.

And that you say -- aren't -- is that we can do to.

Say it let's say the full effect of the fiscal -- -- realized that we have hundreds of billions of dollars in.

Spending cuts right and massive tax and to fall -- tax cuts are not extend -- -- full effect of the cliff.

What can -- consumer -- Well there are few things consumers can do one is that you can pump up your 401K as best you possibly can because that's money that you'll be avoiding having taxed.

And more money that will be available for you down the road and -- retire.

The second thing is.

You have to be realistic getting in periods of uncertainty.

And when that fiscal cliff hence there will be a great deal of economic uncertainty.

It's very important to to strengthen your -- day.

And if you can build up a fund of six months worth of operating expenses in your family.

That would be that would be very helpful because you don't know if you're gonna get laid off you don't know whether that company that you work for.

May have relationships with the government and those relationships maybe either suspended or.

You know.

Cut back and you say that because these spending cuts defense is gonna take a hit so if you work for a Lockheed Martin.

They might have job cuts absolutely so you have that also the the -- because companies will be as are sitting on and probably will continue to sit on him.

Trillions of dollars that they have that they could in fact be spending and investing in.

The business community keeps telling the president and congress meet people are stuck.

The whole point and there are the election was to bring certainty back to the markets and we have common consumer confidence -- -- their high.

Business confidence is certainly down.

Well it is and not only that good but if the fiscal cliff continues to move forward and we get closer and closer to it it's sort of like hurricane.

Isn't you saw it coming but you can't really see coming in a lot of people unfortunately.

Didn't do or they weren't there was nothing they could do.

But what -- -- people out there are saying.

And and you'd -- just never know.

That problem is that when you have this kind of intransigence on both sides.

And everybody's posturing for the cameras and you don't know and the problem is that that with the erosion that occurs and business confidence and consumer confidence and it will erode.

You know you can't just flip a switch and turn -- back gonna get it takes time and we should point.

Out that our.

Across the Atlantic the eurozone is now officially in a recession.

And so many investors mrs.

west doctors are sliding.

They're pretty convinced that if nothing's done to avoid that class we'll be back in recession also in the beginning -- the new year.

-- explanation just did a study and they essentially said it's the full effect of that.

This -- of his realize meaning all of the bush -- tax cuts are not extended the Obama cuts are not extended and that 2% payroll tax cut.

Goes away right.

And the AMT is not -- -- listings happen.

Here in the northeast are tax bill for regular family of four median in come going up at seven not.

And that's.

Suffocating for many people.

That's and hour and and the and the problem is it then this is on top of all the devastation that we just -- through mid east.

And you know which which brings up another thought to mind and that is that one other element of how you strengthen yourself when you -- something like this should you gotta look at your -- You've got to see where you are.

You've got to make sure it's a strong as possible and for instance if you're living in -- hurricane zone.

You know one of the elements -- that can destroy your credit is late payment of bills or.

Way too much utilization of your credit card -- -- truth is a lot of people will be using credit cards to get themselves through until they get relocated back into their homes.

And that that they could -- not receiving bills on time so they have to communicate with creditors and with -- post -- and everything else.

The key thing is just as you have an investment portfolio.

You have -- credit portfolio.

You have to be the manager your credit portfolio.

And you have to make sure that its strong and one of the reasons above all else even besides just kind of -- -- -- wanna buy something.

Is that an enormous percentage of employers look at credit reports as part of the job -- valuation process.

-- if there's an issue even though some states are now moving to -- that.

Or at least a limited.

If your report is not as strong as possible if I don't remove that which is negative which is incorrect.

And corrected.

Or be able to compel -- we explain why the.

There's a problem -- going to have a you know I I agree with -- 100% but I can't help but think of people well known mountain which is always think they don't have to worry about it we're gonna get a bailout they're gonna loosen those regulations.

The government's gonna do something this isn't going to happen to me.

Just like her consent and it's coming but it's not really coming that if it does come it's like -- really hit me I can tell you -- someone I -- the house.

That hesitant to -- unsigned thank you about but it's one of those things where you know.

Luckily I was prepared as I could beat him so I had flood insurance and excess flood insurance thing.

But so many people didn't.

They didn't because again it's kind of this theory of this is horrible thing coming but it's really not coming and I think.

It is better to be prepared for that which ultimately doesn't come then to be -- prepared for that which does frank and therefore.

Consumers have to think Smart.

We can always rely I think we've learned on what congress is or isn't gonna do because frankly you know given the choice they always and the mess up and.

One man and I know they ever -- keeps saying that.

They're going to do something they have to do something but I think that amount of real working days that congress has to deal with the fiscal cliff.

Is down -- in the low teens at this point.

It is I mean again you could sort of go off the cliff -- really yourself back in because congress oasis of the opportunity the new congress to pass legislation.

But again the real issue here is it's not so much.

This fiscal cliff it's the fact that we don't would want to keep facing these kinds of fiscal -- so.

We not only have to deal with the problem as it is but we have to reform the way we deal with these kinds of problems in the future if we don't.

Then every year or two or three we're gonna run into this -- And then we're -- in kicking the can down the road -- -- -- -- down the road and whoever.

Adam thank you so much for coming on your website credit dot com and on our screen right now.

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How would the 'fiscal cliff' impact consumers?

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