What does being "upside down" in your house really mean?  The number of upside down homeowners - those who owe more on their mortgages than their home is now worth - has been growing dramaticaly since 2006 as real-estate prices started to tumble in some areas.  By some estimates, between one in six and one in eight homeowners is in that position nationwide, most of them people who bought homes in the past few years or who put down small or no down payments.

This is a worry since owing more than your home is worth is the first step toward foreclosure.  And it's a concern because foreclosures are roiling the financial markets and, closer to home, they drag down our neighborhoods.  (Most people who still have equity, by contrast, would rather sell their houses at a loss than lose what's left of their investment.)

In response to concerns about rising foreclosure and delinquency rates, federal regulators are studying possible new programs aimed at needy homeowners.  There are concerns that such programs could attract a flood of applications from those who don't truly need assistance or encourage lenders to push homeowners into foreclosure.  At the same time, lenders such as J.P. Morgan Chase and Bank of America have committed to working on new loan terms for the most-distressed homeowners.

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Typically, homeowners fall behind after a job loss, divorce or serious illness.  In the current downturn, foreclosures are higher than in previous cycles because more homeowners reached beyond their means to buy their homes and simply can't keep up the payments. 

So what does this all mean for you?

If you have a low-interest fixed-rate loan, keeping that mortgage current has some value, even if it means cutting other household expenses.

In addition, the penalties for defaulting are great.  In most cases, walking away from a mortgage can knock a top credit score down to the cellar, says Ethan Dornhelm, a senior scientist at Fair Isaac Corp., which sells credit-scoring formulas to credit bureaus.  A person with a stellar credit score from the high 700s to the top score of 850 would see it drop more than 200 points.  A person whose credit score is lower may see it fall by fewer points, but still end up with a score in the mid 500s.  At that level, reasonably priced new debt, from credit cards to car loans, will be out of reach.  In addition, a default could lead landlords and utilities to require more cash up front and even affect your job prospects.

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The major objection most salespeople face during slow times is, "I have no money."  How is that possible?  If your customer has no money then they're not living or they're out of business.  What they are really saying to you is, "I don't see the value."

What can you do to close more business in a slowing economy?  Start by answering this question that will put you back on the path to success.

Are you making every conversation count?

Clients and prospects should be impressed with your preparation. When you demonstrate that you've done your homework it becomes easier to have an open and honest dialogue with you.  When the economy slows down, people get nervous.  They don't want to waste time meeting with salespeople unless they see some potential value.

The "smile-n-dial" mentality of simply pounding on more doors with the same pitch may produce extra appointments.  But it also creates the fear that you're going to sell them something that they don't need.

Open your next client conversation with this simple phrase, "In preparing for this meeting I took some time to¦"  Then simply highlight the two or three critical things that you did to prepare, and watch what happens to the atmosphere of the call.  You will blow away the last salesperson who opened by announcing that they were just "checking in" to see if anything new was going on.

The goal is to stop "educating" your customers.  They don't care unless they are engaged.  Talking about your company, your products and your reputation will not engage customers.  Talk about them, ask about them, provide ideas for them and communicate in terms of them.

The major objection most salespeople face during slow times is, "I have no money."  How is that possible?  If your customer has no money then they're not living or they're out of business.  What they are really saying to you is, "I don't see the value."

What can you do to close more business in a slowing economy?  Start by answering this question that will put you back on the path to success.

How much energy are you wasting on insignificant activities?

You've probably been told that business will improve if you just make more appointments, increase the number of presentations, and ramp up your number of calls.  Experience tells me that chasing everything that looks like an opportunity keeps you busy but makes you very ineffective.  You'll be working hard, but you won't be working smart.  Eventually you'll burn out your prospects and yourself!

You could start today by re-qualifying every prospect and work on cleaning out your funnel.  Focus on your best selling opportunities and put your energy there.  You'll create more success by investing the right resources into ten solid opportunities than you will by chasing twenty five half-baked leads.

Does managing your money have to be this complicated?  Actually, no. In fact, if you spend all your time focusing on fractions of a point, you may lose sight of the big picture.  The blunt truth is that if you make the right choices on a handful of major decisions, you'll probably never have to worry about financial security.

7. Marrying for better or worse

Take everything you own and divide by two.  Deciding whom to marry may not seem like a financial decision, but you'll find out otherwise if you ever have to endure the pain of divorce.  Bankruptcy, a legal judgment and even the IRS can't touch certain assets, such as money in retirement plans.  But nothing is safe from the divorce attorneys.

On the positive side, getting married can double your income. Though the quaint notion that two can live as cheaply as one is dubious, it doesn't cost twice as much, either.  Financial teamwork early in a marriage can yield a substantial payback in later years, provided you stay together.  Choosing someone whose long-term financial goals are similar to yours will reduce friction and help you stay on track.

Source: Richard Jenkins, www.moneycentral.msn.com