Well, the credit crunch can be defined in one of two ways. Either the availability of credit (loans, mortgages, credit cards etc…) will suddenly be reduced, or the cost to obtain this credit this will substantially increase. Either way, the credit crunch will make credit will seem like an old friend that can no longer be relied on to bail you out.
So hows best to prepare for the credit crunch?
The best idea is to plan ahead and get all your finances in order before the credit crunch bites you hardest.
The first thing you must do is get your credit file. You can get this for free from Experian with a 30 day free trial, that will not cost you a penny.This will detail all you financial obligations and give you very good picture of how healthy your financial standing is. If you see any discrepancies then you must contest them with Expiran straight away.
Once you are happy that your credit file is up to date, then you must detail all your incomings and out goings. This will give you a clearer picture of where your money goes. It might show that you spend more than you earn and you are living above your means. You must rectify this imminently. If you put all finances in order, this will put you in a good position for the credit crunch.
Finally, the last method to help you through a credit crunch is to cut back on the non-essentials. By the term non-essential, I mean anything that you spend extra money that you may consider a special treat or better quality product. For instance if you buy the expensive brand name Bolognese, you could save some money by buying the cheaper supermarket brand equivalent. Cutting small corners on a big scale will save you lots and lots of money.
Credit crunch conclusion
In summary, you are in control of your financial position and it’s your responsibility to take control of your finances. Not all financial situations can be in you total control, but if you follow the steps above, it will certainly go a lot further to helping you through the credit crunch. But do remember its very important to get get your credit report from Experian.
About the author Gavin McNamee who offers free credit reports from his popular site http://www.freecreditreportuk.net
Tags: credit, crunch, file, Finance, free, money, report, worries
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