Six Simple Ways to Ease the Credit Crunch
Like it or not, the country – and indeed, most of the world – is in the icy grip of the credit crunch. However, there are ways to help make these financial straits a little easier to bear. Here are six tips to help you weather the current monetary storm:
1. Set a budget (and stick to it).
This is really the golden rule of personal finance. Make sure you know exactly how much you have, exactly how much you need, and exactly how much you have left over at the end of the month. If you do this, and make sure you always have a little bit extra tucked away in case of an unforeseen emergency – a boiler breakdown in the middle of January, or your car’s engine finally giving up the ghost and needing a trip to the garage – the credit crunch won’t cause you too many problems. Aim for three months’ typical expenditure (six months’ worth, if you’re self-employed), and you’ll find a lot of worries disappear from your shoulders.
2. Pay off your debts.
Just because money’s tight, it doesn’t mean that you can afford to forget about your debts. The more you can pay off and still live comfortably, the better you’ll be in the long run, as you’ll end up paying back less interest. Try and put as much as possible towards your repayments, and avoid only paying back the monthly minimum if you can at all avoid it.
3. Try second-hand.
If you absolutely have to make a big purchase – furniture, for example, or white goods and electrical products – you might want to consider trying second-hand shops and other non-new retail outlets. It’s possible to pick up some real bargains… and besides, does it really matter if your washing machine isn’t fresh out of the showroom?
4. Don’t be afraid to haggle.
If you’re making a big purchase and second-hand doesn’t really work for you, don’t be afraid to haggle. Most major retail outlets (especially for larger items) have some degree of flexibility with prices, and may be able to make you an offer. While it might not amount to much, you don’t get anything if you don’t ask. What have you got to lose?
5. Use your loyalty points.
The vast majority of people have loyalty cards tucked away in their purse or wallet, slowly accumulating points that can be redeemed for store credit, special offers, or reduced prices on getaways or other out-of-store treats. Now’s the time to cash them in, and get back some of the (often surprisingly large amount) of money that you’ve got saved up on your plastic. After all, it’s not gaining interest, and it’s tied up in a very specific place. If you’re going to be making a purchase at a shop you’re in a points-scheme with already, it should help to keep a few more pennies about your person – and every little helps.
6. Keep looking.
Even if you think you’re pretty well bunkered-in as far riding out the credit crunch goes, there are always savings to be made – especially in uncertain times like these, where the financial playing field can shift rapidly. If you pride yourself on being financially savvy, it doesn’t hurt to keep a lookout for new offers and deals coming up that could save you considerable amounts of money.
