We should however all make sure we do waht we can to minimise the adverse effect of the recession, and reduce our costs;

Shop around for cheaper utility suppliers: According to the independent watchdog "Consumer Focus" at the end of 2006 there were at least 10,000,000 energy consumers who had never switched energy suppliers, and as a result were missing out on over £1 billion in potential savings. As much as 3350 can be saved in annual costs by find the cheapest supplier for your Gas and Electricity. The same also applies to your telephone and broadband providers, there are some very good deals out there at the moment and it is surprising how a few pounds here and there soon start to add up.

Share a lift to work: Do you live close by to anybody that works where you do or near where you do? If so why not arrange a car pool? Sharing travelling costs to and from work with a number of colleagues can help reduce your monthly costs by a worth while amount.

Shop around for cheaper insurance: We all have to have some form of insurance whether for our homes, our cars or even our lives. However by shopping around and getting the best deal on any insurance that we do pay regularly we can save even more money. It is important you try a number of different providers before accepting an offer, and even more so to make sure you are comparing products that offer the same features. Not all policies offer the same levels of cover and it is worth making sure that you know exactly what is covered and what is not.

Consolidate expensive credit card debts: As a result of their being significantly less lenders in the market, this option is available for less applicants in todays climate. However if you are a homeowner that has equity in their property or a tenant with a good credit history, and have a number of credit cards that you are paying the minimum amount each month. You could significantly reduce your monthly outgoing, and reduce the overall interest you pay on the debt by consolidating them all to a loan with a lower interest rate and paying one smaller monthly payment.

Debt management: If you do not quaify for the debt consolidation option, but are struggling meeting payments to your creditors, you should consider speaking to a specialist counsellor about some form of debt management plan. With both the IVA and DM route your creditors will be contacted on your behalf and your payments and balance will be negotiated, and in some cases the interest frozen.

Protect your payments: With the current economic climate and more and more people being made redundant every day, it is ever more important that we all have some form of Payment Protection or Accident Sickness and Unemployment Insurance in place. This type of insurance can be obtained for as little as £1.80 for every £100 pounds of cover.

By doing all of the above mentioned we will all be in a better positon to ride through the storm, and be all the stronger when we come through the other side.