Any defaults will affect our credit scores.  We will see more adult children move back in with their parents.  I am luckier than some because we paid our house off in ten years. Not having a mortgage helps a lot. But not all have been this fortunate. I grew up really poor. Neither of my parents finished high school. They came from poor, large farm families. I know the power of money. I save and live below my means. I drive a car that gets 40 miles per gallon. I buy clothes only on sale as a rule.  Love thrift shops for non essential items. I'll pick up a couple of investment properties in forclosure. I recall my mom crying when I was a little child because she could not pay the bills. The day a man came and took my mama's sewing machine for non-payment is one that I will never forget. Mama did not say a word, but her face said it all. I did not know at that time what a repo man was, but I knew that he would never visit me. And he has not. And I do many charatible projects. God expect us to give back to our community. And it feels good to do for others (especially children).

I don't know how you can make these assertions about what will and won't affect credit scores when NOBODY knows how their calculated. Can you imagine that there is this number that almost controls your life and they won't tell you how they arrive at it? Seems like a completely screwed up system to me, and designed ONLY to benefit the lenders and banks by giving them an excuse to collect more money. What does it do for us?

How do one get back on their feet with their credit scores taking a nose dive like the housing market.

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One wonderful way to help out during these times (or any time) is to reduce your dependence on debt/credit.  Get in the habit of using cash.  It may seem outdated but our grandparents actually "saved up" for things.  When you use cash for purchases, you pay less in the long run & you don't get caught when you can't make payments.

My wife and I paid cash for our last two cars.  We no longer have any debt aside from our 1st & 2nd mortgage.  We have tripled the payment on our 2nd mortgage & will have it paid off next year.  There is so much more freedom when you don't have all those payments hanging over your head and knowing that you have several months of savings sitting in an account in case of an emergency.