How to survive the credit crunch

The World is changing. And VERY quickly. To survive the credit crunch you will also have to act quickly. If you don't the crunch can catch you out.

• Change your habits. Is the Gym membership REALLY necessary? You can always rejoin it later.
• Don't take on any more credit.
• Clear all credit cards (one of the most expensive methods of credit)
• If you have capital you should consider keeping it rather than paying off the mortgage if things could be difficult (ie possible redundancy etc)
• Can you get a second job?

Action is essential. In the UK, for example, a bank can take possession of your house with just two missed mortgage payments. It does not have to go to court to do this. To be fair, this is most likely to happen when you have a buy to let mortgage. However, banks have learnt the "Change your Habit" lesson quickly and are dealing with arrears much more aggressively than in the past. See the massive rising number of bankruptcies.

Life is for Living

More to follow shortly