Lending Club Blog

A Different Type of Survival Instinct

In my recent post about stockpiling cash, I discussed how the economic downturn was causing some people to go into survival mode. While going into survival mode during tough times seems natural, how survival mode is defined seems to vary from person to person.

The reaction I previously considered was the accumulation of necessities and a trend toward self-sustainability. Alternative reactions include denial, entitlement, or worse. Reuters described this reaction as survival panic. Changes in financial situation, or even the fear of change, may trigger an extreme reaction.

From theft to violence and depression to drug use, some people handle this change in a destructive way. Does the inability to maintain your lifestyle inspire you to keep up appearances by stealing what you can no longer afford? Does anger at a former employer inspire you to take out some form of revenge? Are you unable to cope and looking for a way to escape?

Experts expect many of these scenarios to play out. The Reuters article reminded us how ingrained consumption is in our culture. After years of easy credit and growing investments, it’s easy to see how these habits formed. Abruptly changing these habits out of necessity will surely cause some adverse reactions.

Thankfully, a positive reaction is also possible. In addition to the positive survival mode described previously, there has been a general trend towards reduced consumption and a rise in frugal behavior. Only time will tell whether these good habits will continue as economic prospects improve. As I implied in Why Spending Less Than You Earn Seems So Difficult, bad habits are more likely to stick around when the root cause of the habit is resolved. My hope is that the negative habits created during this downturn are outweighed by the good. Do your part and follow the advice offered in Changing Your Habits with the Slowing Economy.

How are you coping with the economic downturn? Share your ideas here!

Saturday, January 31st, 2009 at 6:40 am

Comments (0)

Recommended

Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

A Recap: Credit Strength on the Lending Club Platform

We are proud of our… Read More »
July 14, 2016

A Message to Investors from our President and Acting CEO

Today, our President and acting… Read More »
May 19, 2016

Lending Club Receives Tribeca Disruptive Innovation Award

Disruptive innovation comes in many… Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016

Lending Club partners with Funding Circle and Prosper to launch Marketplace Lending Association

Read More »
April 7, 2016

Lending Club Welcomes Maryland and North Dakota Investors!

We’re now open to retail… Read More »
February 23, 2016

What is Lending Club?

More than one million Americans have achieved their financial… Read More »
February 16, 2016

Get ready for tax season! Lending Club Now Offering TurboTax Integration for Form 1099s

Read More »
February 12, 2016

Lending Club Success: Surpassing $16 Billion in Loans

Founded in 2007, Lending Club’s… Read More »
February 11, 2016

Credit Performance Update

Summary: Credit performance of our standard program is coming… Read More »
February 7, 2016

2014

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w