The credit crunch is 12 months underway, but, there are no signs of it abating. Top British banks continue to report disappointing profit warnings. With house repossessions expected to rise, banks could be faced with even more write offs in the future. With the forecast bleak, how might consumers respond?
Kick Addiction to credit
This recession is primarily caused by the hangover from a credit binge. Banks have had to let go of their laissez faire attitudes to debt. More than ever it is important to protect your credit rating and pay off your debts. Start with debts with highest interest rates first. Look for ways to cut unnecessary spending and reduce your regular outgoings.
Protect Your Job.
Unemployment is already rising, make sure you don't give your firm reason to sack you. Be willing to adapt and offer positive contributions to your firm. Be a pleasant, useful worker and you will immensely increase your chances of getting a job.
Rent vs Buy
Rather than buy during a period of falling house prices, continue to rent until the market bottoms out and prices start to rise. There is nothing to be gained from buying now apart from negative equity.
Don't Despair.
Amidst all the gloom of the credit crunch and looming recession, don't despair at all the bad news. It is important not to focus on the bad news but look for ways to get a better job in the future.
Be Flexible
The labour market is becoming increasingly flexible. Jobs for life are increasingly uncommon. Look for ways to boost your income by working for yourself on the internet.
Related
07/08/2008
Dealing With Credit Crunch
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