Survive the credit crunch

Simon Gompertz

If you're looking to tighten your budget belt, or simply do a healthcheck of your finances, this is for you.

Working Lunch's business correspondent Simon Gompertz has compiled some no-nonsense advice for weathering the stormy economy.

1. CURB YOUR CARDS. Get rid of storecards. They're too expensive. If you have credit cards, lock them in a drawer. They're just for emergencies.

2. START SAVING a little bit with a credit union. Then you can get a cheaper loan, if you really have to borrow.

3. GET A FREE BENEFITS CHECK-UP. Some people find they're missing on thousands. Go to your councils or charities, such as Age Concern and Help the Aged.

Benefits you might be missing out on:

PENSION CREDIT, COUNCIL TAX BENEFIT - you have to claim these

TAX CREDITS - if you have children or are on a low income

4. Try the RENT A ROOM SCHEME. You can let out a room in your home for £4,250 a year tax free.

5. Scour your BANK ACCOUNT for direct debits and standing orders which you don't need. Clubs and subscriptions, for instance.

6. Give yourself a CASH BUDGET every week for essential such as food. Check how much you are spending. You might find big savings.

7. Get FREE INSULATION by phoning your energy supplier. It's targeted at pensioners and low income families. And find out if you can get a cheaper energy tariff -- over the phone or from a switching website.

8. If you are in debt, TAKE ADVICE. It's vital that you protect yourself by dealing with important debts first. Talk to Citizen's Advice or ring National Debtline 0808 808 400 (It's free!)

9. Claim a COUNCIL TAX DISCOUNT if you live on your own. You can still have people to stay if their main residence is elsewhere.

10. Make sure any savings you have are in TAX FREE CASH ISAs (Individual Savings Accounts). Now interest rates are falling, you'll be making hardly anything once tax is taken off.