If you haven't already experienced the effects of the subprime meltdown, liquidity crisis and credit crunch, you soon will.

Everyone needs to get informed and act now -- regardless of whether or not you own a home. Don't think for a minute that this will not affect you, because it will.

It is becoming more difficult for people to qualify for loans -- regardless of whether or not they are attempting to consolidate debts, borrow equity or simply buy a home. Even for those who make a lot of money and have great credit scores, the programs are changing daily, making it tougher to qualify.

If you have an investment property, things are even tougher. Most lenders no longer offer interest-only programs which, of course, make the best use of your cash flow. The lenders who do have tightened their standards, and that, compounded by declining real estate values in much of the country, makes it very tough to accomplish the goals of the individual homeowner or investor.

Pouring salt into the wound, appraisers in response to pressure from lenders are getting more conservative with their appraisals. This in turn makes it harder to get the loan you need in order to buy your new house, consolidate your debts or simply refinance your existing loan.

An individual might think he or she need not worry about this because the person is not planning on selling or refinancing anytime soon. Even if that were true, one needs to be fully informed of all the working components in today's market to protect their assets and grow their wealth.

We have entered an era in which the old rules of money no longer apply. It is now more advisable to reposition equity into a safe, interest-earning account that will act as an emergency fund if needed. Think of it as a life preserver or an insurance policy -- one you hope you will never need, but if you find yourself in a situation in which you do, you sure will be glad you have it.

It goes against the grain of everything we have been taught, and appears to be extremely counterintuitive, but one should seriously consider borrowing against your equity while you are still gainfully employed and before you risk your house declining in value. Take that equity and move it to a conservative, compound interest-earning account and do not touch it. This is a long-term investment.

Many people fall victim to the traditional thought process in which they are apprehensive about taking out a loan because of the "simple interest" one must pay. However, that cost is a drop in the bucket compared with the miracle of compounding interest you could earn in the new account.

With your home equity now safely set aside and available in the event of an emergency, you are prepared to move forward in these times of economic uncertainty. This is a powerful way to protect your home, family and credit while the real estate market and economy is wavering.