Tips for coping during the downturn

In the first instance you should always ensure that you get advice, the following tips are for guidance only:-

1. Get advice
   There are many local, regional and national organisations that offer free and independent money, housing or employment advice.  On these web pages, we can direct you to advisers who can help you work out the best course of action.
   
2. Don't panic and bury your head in the sand
   No matter how desperate thing seem, there are ways to manage your debts.  Ignoring the debt problems will only make them worse.  Don't ignore calls or letters from the people you owe money to (your creditors).  Contact them to explain why you are having problems.  The sooner you do this, the more options you will have for solving your financial problems.
   
3. Pay your priority debts first
   There are some debts you need to pay first before others, because the consequences of not paying them can be much more serious.  For example, mortgage or rent debts are a priority as if you don't pay these you could lose your home.
   
4. Work out your monthly budget
   Work out how much money you've got coming in and going out of your household/business on essential expenses like food and bills.
   
5. Make savings on your household expenses
   Look carefully at your spending and see if there is anything you are able to cut down on.  For example, you could shop around for a cheaper gas or electricity provider, or look at cheaper mortgage or insurance providers.
   
6. Maximise your income
   Are you getting all the money you are entitled to?  There may be benefits available and you don't necessarily have to be out of work to claim them.  Anything from home insulation to reduce your fuel bills, to council tax rebates, Tax Credits, or support with school meals may be open to you.
   
7. Think twice about taking out a loan to pay off all your debts
   It may seem an easy opt out, but you may end up paying back a lot more than you borrowed and at very high interest rates.  You may not be able to afford the repayments and the loan may be secured against your home, which you could then lose.
   
8. Buy locally
   Businesses are feeling the effects of the economic downturn more than most, and you can help support them by buying goods locally.