Five Ways To Beat The Credit Crunch

You need the Foolish tip of buying shares with any leftovers after longterm saving.

Thanks for number 5. I automatically renewed my Tesco home insurance to find it had gone up by £100 - I've had no claims! I fared much better on my car insurance by going with More Than - treat price, great customer service. I'm £150 better off with that so £50 up. Better than a poke in the eye with a sharp stick as my Grandad used to say.

Frankly I find it disgusting that our government/s have allowed such lax conduct by banks and building societies etc., to enable a vast number of people to get into so much debt. Whilst self discipline and self control of spending is obviously the best form of avoiding Debt/High Interest charges and ultimate poverty, there used to be strict rules of limitation on what 9ndividuals could take on- based upon the level of their income. My view is that banks and building societies etc., who have done this mis-service should now pay the price and stand the cost of extended borrowing and NOT be allowed to foreclose( a simple word with massive impact. Their greed has been the ultimate motivation!

"Frankly I find it disgusting that our government/s have allowed such lax conduct by banks and building societies etc., to enable a vast number of people to get into so much debt."

Frankly I find it disgusting that people have allowed themselves to get into so much debt. I wish people would actually take some responsability for their own lives and not expect the government to lead them every step of the way. Does the government go to the bank, take out a loan and pack you off on holiday? Does the government max out your credit card and limit you to minimum payments? Has the government been warning about over-extended debt for the last 3 years?

ARTFool54321 - It is true that people have to take responsibility for their own actions however there are a multitude of reasons why people find themselves in debt. And, it not always their fault (take the thousands of people who may be made redundant at Lehman Brothers). Many of them may not have a savings pot to fall back on. What will they do in these cash strapped times? I have to agree with karatekate too, many people will not be able to transfer balances or re-mortgage full stop so offering this kind of advice to the majority of people who cannot benefit from it seems slightly confusing - thanks all the same Cliff!

Have you ever thought that the system is doomed for ever!!
And its not from yesterday! Since the Big Bang, the Big Depression in 1929, it became obvious that something must be done. 80 years down the road we are in the same situation?? Are humans so stupid or what?
Greed and irresponsibility - this is the answer? Individually and as groups or majestic economists/bankers/highflyers etc.
This is pure crime and must be outlawed!
All thouse big financial institutions can not control themselves! They proved it once again? And I have no pity whatsover for all those "work hard play hard" men and women motivated only by money! (Remember the glee on their faces around Christmas magabonuses-giveaway time?
I just pity those 25,000 old people who will die this winter either from cold or hunger?

Million dollar, and pound, bonuses to push management and staff into encouraging ever more risky lending to less and less suitable borrowers has made sad reading for many years. It has also made many hard working, honourable folk feel less able since they have not been endulged with such ridiculous bonuses, extravagant freeby holiday awards, and been able to go out buying ridiculously expensive pink champagne, cocktails, cars, and push up prices of tinsel properties.

We are all going to feel the effects of such extravagant behaviour by the bosses and then the staff for some considerable time - will we learn from these excesses and their consequence, history unfortunately suggests that we shall not, well not for very long anyway.

Well said soapwelder - though the government is NOT blameless - spending money it hasn't got mainly to buy votes to keep the leaders and MPs in jobs, and therefore running a massive deficit, which our children will have to pay the interest on, and leaving no room for manoevre now the chickens have come home to roost.

Muncher100 - Lehman employees were earning very good salaries and bonuses up until Friday. If they had been prudent, and saved, then they will be able to survive the current problems.
There are very few people who don't have any control over the debt position they find themselves in today.
As other posters have already stated quite correctly, there is no-one else to blame but yourself.
PS this government is too busy gorging on all its self-awarded freebies, so please don't rely on them sorting out any of this country's problems.

Just goes to show how little the present government has done. If they have no control over the markets, which is very self evident, how can they claim victory for low unemployment in the past? Free market economics I think...

Fact is that we have the highest tax burden since ww2 and really nothing to show for it, and nothing in the treasury to help people who are about to or have lost their only means of income.

Labour seem to have a habit of doing this.

Don't mean to be funny but why is it that all the the so called "governing bodies or watchdogs" such as oftel, fsa etc.. seem to be run in a manner whereby they require permission from the very companies they're meant to oversee in order to lay down guidance rules? I feel very sorry for all those who have lost their jobs and or savings in this serious error of fiscal management but I had hoped that after Nothern rock, Fannie mae etc.. the FSA might develop some teeth. Would it be possible to bring civil or criminal proceedings against a bank for negligence resulting in loss of financial stability (as a customer whose faith has been severely shaken in ones ficundiary) or is that a long shot?

Onetrackminds: by "ficundiary" (non-word) I think you meant fiduciary.

But I had to think a bit!

I don't think the blame lies with any one side in the sloppy lending by the banks verses irresponsible borrowing by people debate. Rather in various circumstances blended together to create this problem. I think there has indeed been some borrowing by people for ridiculous reasons such as having the latest designer gear. But also some individuals have been placed in financial dire straights through no fault of their own, such as unemployment. There has been a dramatic shift of emphasis in financial institutions away from responsible lending, to an all out aggressive sales pitch of loans and credit cards, but you can just say no. (That is if your not using them to try to meet essential bills, whereby your options are limited and you will be desparate to keep the house, or pay for food etc) But also our consumer culture plays a part. "Buy it now, the latest gadget, why wait?" Seems to be the message in capitalist land. There is no incentive or rights for prudent behaviour it seems. For example,(and please correct me if I am wrong as I am an ignoramous) the Sale of Goods Act entitles consumers to return goods if not fit for purpose for 6 years. But instead all shops ignore this to try to sell you guarentees for three years, when your rights are enshrined in law. And if your TV blew up after 4 years you get bounced between the shop you bought it and the manufacturer it came from if you try to discscuss this act. Its far less hastle to buy a new one. We need quality purchases not quantity. And thrift should be encouraged!!

Blaming the Government on this is ridiculous and a little disengenious: people and businesses have to face the consequences of their financial decisions in order to understand that THERE ARE CONSEQUENCES. I work in consumer credit and to be honest the people I am dealing with will max out one card and then start on another. You can't stop them as they feel 'entitled' to run round shops indulging themselves, until the time comes where their payments are hurting them so much that they are using the cards to pay for their food shopping, petrol and bills. Now the attitude appears crazy, but when the property prices were rising by the month we could all absolve our consciences by telling ourselves that one day we could sell our houses, pay off our cards and relax in the sunshine. Where I see secured lending I am often seeing defaulted payments: where is the fun in paying your debts?This is consumer naivety. That said, I have low balances on my cards, and am now receiving monthly limit increases and letters offering me financial rewards for using my cards. Perhaps this consumer naivety has been fostered and encouraged by the banks (though, again, would we really be happy if the Government took a hard line on this and started interfering?). We can all learn something in the coming slowdown, but something tells me that the majority of people (and businesses) will choose not to. Just look at the paper millionaries of the 80's who became the bankrupt litigants of the 90's. I think we have been warned by history more than a few times.