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Even though there are some reports that fuel and food prices have actually started to drop during September 2008, the doom and gloom of recession is still hanging over the UK economy, forcing most to review their spending habits and devise novel, new ways of saving money. Books extolling the rediscovered virtue of thrift and even one on ‘how to survive on a pound a day’ are being rushed into print as publishers seek to benefit from the UK public’s new found eagerness to cut their spending habits. Internet lifestyle sites are also turning their editorial towards ‘how to survive a recession’, and suggesting that the only way to get through the next few years is for the country’s populous to collectively tighten their belts. As fuel, food, utility and housing costs have all risen sharply since the beginning of 2007 many UK citizens are struggling to stand still. Pay increases have been pegged at or below inflation for many workers and in real terms that makes them considerably worse off. As a result many in the UK are either cutting back spending on their supermarket shopping or moving to less expensive stores or brands, in order to get more value for their money. Because gas and electricity prices have risen so rapidly over the last twelve months many householders are cutting down the time they heat water and once winter hits will be turning the thermostat down a degree or two, in another attempt to keep bills down. But, as well as cutting expenditure and changing habits it would also be beneficial for most people to carry out a full financial review. A definite good move for anyone holding outstanding debt is to review whether they are getting the best deal available on their current loans and credit card balances. Many finance companies have imposed interest rate rises for existing customers, even though the Bank of England base rate has remained constant. But, as always it pays to shop around and compare loans to ensure that any deal is the best on the market. Similarly, those with savings balances should review whether they are getting the highest rate on their deposits. Many financial organisations are desperate to attract new funds to help improve their liquidity ratios, and are willing to pay top rates. The upshot of the advice that is being dispensed by all and sundry is to review all spending and analyse whether it is necessary and if so, can the cost be reduced? Also, ensure that you carry out a full review of your current financial situation and make sure that you have the best deals available. Follow that advice, so say the sages and you will be better placed to survive any possible recession. Isla Campbell writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
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compare loans, recession, UK economy, saving money, loans, credit card balances, Bank of England, savings balances,
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