Debt Ceiling: Here's What to Do NOW

Stocks are up modestly today, after four down days. Sure, investors saw July gains evaporate, but the muted action thus is unlikely to move the needle in Washington. The good news is that the gridlock gives you time to take action right now.

ON CBS TV stations this morning, I discussed what worried investors need to do as the debt ceiling deadline rapidly approaches.

Here are your BIG 3:

1. Double-check and refresh your emergency fund: Make sure you have six months of living expenses set aside in a bank account, a CD or a money market account
2. Lock in a fixed rate: With rates are at historic lows, now is the time to grab that 4.5 percent mortgage, because if we blow through the debt ceiling, we could see interest rates rise. If you have government-guaranteed student loans, you can lock in your current rate by "consolidation" with the Federal Direct Loan Program.
3. Evaluate your portfolio: Perhaps you have been in hole for three years and didn;t realize that being 100 percent in stocks or locked up in long-term bonds isn't the greatest idea. Use this time to diversify!

• Doomsday Portfolio for a US Default
• 3 Calming Thoughts as we Approach Default
• Cost of Congressional Gridlock: $130B

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

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