What is a Credit Crunch - What is a Recession?

A recession normally affects the whole country not just the area you live in and can sometimes even affect the whole world. A recession or credit crunch is basically where there is a decline, cutback and loss of prosperity, and economical activity.

A credit crunch or recession affects jobs, and the job market, houses and the housing market, the banking sector, the production sector and much more. There are not many people who will not be affected by a credit crunch or recession in one way or another, however some people will prosper, find new opportunities, and ideas.

Nobody can really predict how long a credit crunch--recession will last, but to help you get through it here are a few survival tips:

1. Don't spend more than you can afford.
2. Consider de- cluttering and selling anything you don't ant or need, this will help free up some cash for emergencies.
3. Start an emergency fund (even if you are still in employment) you never know how safe and secure your job is or will be so its time to start saving now while you can afford to, in that case if anything does happen to your job or your income/s you will be prepared.
4. Start budgeting, spending less means you can save more for that rainy day so budget for as much as you can, create food plans, and never grocery shop or food shop when you are hungry.

TOP TIP: Utilise free websites such as www.moneysupermarket.com and other offline and online sources to help you compare your energy suppliers, household products www.mysupermarket.co.uk and much more. Save money wherever and whenever you can.

5. Try to make your home or house as energy efficient as possible, to help save you money on those pesky household bulls why not try to make your home as efficient as possible, save money both now and in the long run.
6. Don't always buy new, try second-hand instead. Sometimes second hand items or used goods are just as good as their new rivals so save yourself money ad buy second hand products, or better yet swap and get free items, products and goods from websites such as www.freecycle.org
7. Don't buy what you don't need. Before you spend your hard earned money always stop and think do I need it and will I use it?

I hope you have found this article both useful and helpful. Please take on board these quick tips to help you save both money and time during a recession--credit crunch.