Batten down the hatches - how to beat the credit crunch

Oct 6 2008 by Andrew Baldwin, Huddersfield Daily Examiner

THE next 12 months will be rocky, so here’s a checklist to bolster the household finances:

1. Try to build up savings when the pay cheques come in regularly. Yorkshire Building Society says 36% of households have savings of less than £500 – and that the average household, with monthly outgoings of £1,445 and accessible savings of £2,474, could survive only 52 days if its income stopped.

2. Think about dividing them between financial institutions to keep below the £50,000 guarantee from the Financial Services Compensation Scheme.

3. Loans, and the cost of loans, are bad news for companies and households alike as credit dries up. Keep the costs as low as possible, if necessary by switching to a new credit card still offering 0% on existing balances.