Home > The Credit Crunch > Beating the Credit Crunch

Beating the Credit Crunch

By: J.A.J Aaronson - Updated: 23 Jan 2013 | comments*Discuss
 
Beating The Credit Crunch

Despite the fact that the country is now out of recession, many people continue to feel the bite of the credit crunch. Job prospects are bleak, the threat of unemployment hangs heavy, and prices are rising rapidly.

However, the continuing credit crisis need not hurt as badly as you might think. In reality, the hardship it will cause is directly related to the amount of debt you are already in; as credit becomes more expensive, those who are already having some difficulty getting by are likely to find that this difficulty increases over time. There are, however, a huge number of savings to be made on everyday items; with a bit of forethought and very little work it is possible to cut your outgoings significantly.

High Street Savings

The areas in which you can make price savings are as many and varied as the variety of things on which you spend money. There are literally thousands of discounts available from high street retailers, particularly on the Internet - you just need to know where to look. The majority of retailers have cottoned on to the effect of the credit crisis on consumers, and are adjusting their prices or offering deals and savings to accommodate people's lower spending power. A good first step would be to sign up to one of the many free mailing lists that provide regular updates on vouchers and cash-back deals; making use of these 'affiliate' programmes can help to minimise the effect of the current credit situation on your own personal finances.Many consumer advice sites have negotiated deals with retailers to offer lower prices to readers, and there is no reason why you cannot take advantage of these.

Aside from this, there are obvious savings to be made by giving a little extra thought to things like your weekly shop. You might consider planning your week's meals in advance, and sticking rigidly to your ingredient list when you visit the supermarket. All of the 'budget' supermarkets are offering a wide range of special offers on staple products, aimed at helping consumers to beat the credit crunch. Aside from this you should also time your supermarket trips carefully; find out when your local store begins their daily reductions, and visit accordingly where possible.

Reduce your Borrowing

From a financial standpoint, consumers' ability to make savings on their existing credit arrangements has been reduced as banks become more reticent to offer deals. Gone are the days of moving your credit card balance from one 0% deal to another, at least for the time being. That said, there are still ways in which you can make credit cheaper. In the first instance, you should remember that you are almost certainly earning less in interest on your savings than you are spending on your debts. As such, you should look at using any savings to pay off money that you owe, and thereby reduce your debt. This will lower your repayments and put you in a better financial position in the short term.

While the outlook may appear bleak, it is also important to remember that the credit crisis will not last forever. There is no need to panic; look at ways in which you can make short term savings while you weather the storm, and you should be on the road to financial recovery relatively soon.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Why not be the first to leave a comment for discussion, ask for advice or share your story...

If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Latest Comments
  • MoneyExpertise
    Re: How Much Tax do I Have to Pay?
    jamie - Your Question:I was employed from start of tax year to December. then went self employed. earnt 8000 from employed paye…
    23 April 2018
  • jamie
    Re: How Much Tax do I Have to Pay?
    I was employed from start of tax year to December. then went self employed. earnt 8000 from employed paye done tax and no. then…
    22 April 2018
  • Working mum
    Re: How Much Tax do I Have to Pay?
    I haven't worked for over four years and I started a job on 19th March my tax code on pay slip is s1150L I'm due to get paid…
    20 April 2018
  • Tiffany
    Re: How Much Tax do I Have to Pay?
    Hi there. I am wondering how much you need to earn in 6 months (as I have a 6 month contract only) before paying tax and how…
    20 April 2018
  • MoneyExpertise
    Re: A Guide to Unemployment Benefits
    sman - Your Question:Im on jsa and I went for an interview and passed but they said I have to fiil in a registered…
    20 April 2018
  • MoneyExpertise
    Re: How Much Tax do I Have to Pay?
    Keeks08 - Your Question:Can someone please advise. I am going to be working 3 days a week at 150 a day, around £21,000 a year.…
    20 April 2018
  • MoneyExpertise
    Re: How Much Tax do I Have to Pay?
    Snow - Your Question:I am self-employed ,and my colleage too.I earned we earn similar and my accountant make me pay less than…
    19 April 2018
  • Keeks08
    Re: How Much Tax do I Have to Pay?
    Can someone please advise. I am going to be working 3 days a week at 150 a day, around £21,000 a year. How much tax and national…
    19 April 2018
  • Snow
    Re: How Much Tax do I Have to Pay?
    I am self-employed ,and my colleage too. I earned we earn similar and my accountant make me pay less than his accountant. I…
    18 April 2018
  • MoneyExpertise
    Re: How Much Tax do I Have to Pay?
    Ledgy - Your Question:Will I get a tax return if I’ve earned 85000Our Response:Only if you have
    17 April 2018
Further Reading...
Our Most Popular...
Add to my Yahoo!
Add to Google
Stumble this
Add to Twitter
Add To Facebook
RSS feed
You should seek independent professional advice before acting upon any information on the MoneyExpertise website. Please read our Disclaimer.