Tips for coping during the credit crunch
11/02/2009
We all know that times are tough, so here are some tips for coping with the current credit crunch:
1. Don't panic or bury your head in the sand
If you have debt, there are ways to manage it. Do not ignore your debt problems as this will make the matter worse. Contact anyone you owe money to and explain to them that you are having problem. They may be able to offer you some help. The sooner you do this, the more options you'll have for solving your financial problems.
2. Get advice
There are many local, regional and national organisations that offer free and independent money, housing or employment advice. On these web pages, we can direct you to advisers who can help you work out the best course of action.
3. Pay your priority debts first
Pay off the debts that have higher consequences. For example, mortgage or rent debts are a priority as if you don't pay these you could lose your home.
4. Work out your monthly budget
To maintain your spending, work out how much money you've got coming in and going out of your household on essential expenses like food and bills.
5. Make savings on your household expenses
Look carefully at your spending and see if there is anything you are able to cut down on. For example, you could shop around for a cheaper gas or electricity provider, or look at cheaper mortgage or insurance providers.
6. Maximise your income
Are you getting all the money you're entitled to? There may be benefits available and you don't necessarily have to be out of work to claim them. Anything from home insulation to reduce your fuel bills, to council tax rebates, Tax Credits, or support with school meals may be open to you. DirectGov's 'Benefits and Financial support' may be able to highlight some of the benefits and grants available to you. On the web pages, there are a wide variety of organisations or websites to approach.
7. Think twice about taking out a loan to pay off all your debts
It might seem an easy way out, but it may mean that you will pay more than you borrowed. You may not be able to afford the repayments and the loan may be secured against your home, which you could then lose.
8. Buy locally
Help support your local businesses by buying their produce. Buy from your local butchers, your local supermarket and your local shops to help the local economy during the current climate.
9. Visit the government website for update
The Directgov website contains very useful information for everyone. It will keep you updated about any news relating to the recession and you will be able to find out about information in regards to schools, families, health and much more.
10. Don’t buy unnecessarily
Only buy what you need and do not spend excessively in the sales - do not buy just for the sake of buying. Every penny counts.
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