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Be in control of your money


What the 'credit crunch' means for you

The credit crunch is a global problem which has made banks and building societies less willing to lend money.

For consumers, this means you may find it harder to get financial products like mortgages, loans and credit cards – and they may cost you more. Things are even tougher if you have a poor credit rating or are looking for something very specific.

The bottom line is that the credit crunch may make borrowing money more difficult and expensive.

Here are some simple steps to help you manage your money when times get tough.

Review your finances

  • Check your budget – use our online Budget calculator to work out where you stand at the moment.
  • Make your budget work for you so that you’re better prepared to cope with a change in interest rates on your mortgage or loan. Read our Get to grips with your money online guide or download or order our printed guide Making your budget work for you – see Publications.
  • Check your credit score – a good credit history will improve your chances of getting credit. Find out more about Credit scoring.
  • If you're worried about your finances or are concerned you might be getting into difficulties with your debts, don't panic. Our Debt test will give you some tips to help you manage them better.

Start planning now

We know that 1.4m mortgages come to the end of their fixed-rate periods in 2008. This means that you might see a rise in the interest rate on your mortgage when the fixed-rate ends and have to pay more each month. If you have one of these mortgages, or you simply want to see if you can switch to a better rate, follow these steps:

  • Ask your current lender what deal they are prepared to offer you.
  • Shop around to find out what other lenders are prepared to offer – Compare mortgages to check out the different features and costs.
  • Know what you're looking for – visit our Mortgages section or download or order our Mortgages printed guide for information about the different types.
  • Start early – lenders are being much stricter about lending money so give yourself time to check the options available.

Get help

If you're already struggling with mortgage or loan repayments:

  • Talk to your lender as soon as possible. They may be able to help you by arranging a payment plan taking into account your financial situation.
  • Get specialist help – if your lender is unable or unwilling to help you immediately, don't panic. You can get free specialist debt help from a number of different advice agencies, for example, the Consumer Credit Counselling Service, National Debtline or Citizens Advice Bureaux – see Get more help.