During a recession, it’s not just the economy that’s depressed. The stress of debt problems can have a significant effect on your health, both mental and physical. Whether you have lost your job or someone close to you has been laid-off; you find that you’re unable to afford life’s little luxuries for yourself or your family; scraping the money together to pay for those mundane, everyday expenses has become an unending source of stress and the constant financial doom and gloom being forecast by the media has started to get the better of you.

Naturally, in such difficult times, you can find yourself feeling pretty fed up. However, without making light of a situation that is unquestionably painful for a lot of people, you need to keep your morale up if you are going to maintain the motivation to tackle the debt problem. Here’s how to stay upbeat in a financial downturn.

1. Come to terms with your financial situation quickly. Accepting the situation that you’re in needn’t mean complacency though. You can’t bury your head in the sand and pretend it’s not happening; neither should you try to hide the problem from those close to you. Keeping a secret like this can be extremely stressful and have a marked impact on your health. Don’t delude yourself into being blindly positive though. It doesn’t work and the pretence will wear you down. The real respite comes from knowing that you’re actually on the case.
2. Don’t beat yourself up about your financial situation. The majority of debt problems are not the result of irresponsible spending but rather a troubled economy, so don’t lay the blame solely at your own feet. Try to turn the stress of the situation to your advantage and use it to fuel your determination to safeguard your financial future. Be confident in your ability; steel yourself for a hard-fought battle to keep providing for your family.
3. The downturn will not last forever. Although it might seem like a long way off, there is light at the end of the tunnel and you just have to stay afloat until then. After all, there was life before the recession and there will be life after the recession. That doesn’t mean that you should lose focus on the present; be prepared to make sacrifices and tough choices now that will get you and those you care about through hard times.
4. Don’t isolate yourself from a potentially supportive community. In a national downturn, the odds are that you’re not the only one who’s been affected. So, band together and help each other out. It can do wonders for morale to talk to people in a similar situation. Getting a caring, sharing community vibe going can also save you money. If you band together, you can share resources; maybe not necessarily in terms of money but do consider helping out with a bit of DIY, childcare or carpooling.
5. Be proactive in actually making your situation better too. Get debt help, bring your budget back under control and start to manage your financial recovery. If you’ve lost your job, don’t wallow, get out there and look for another one. Look at your food budget and cut back on those unhealthy options. Keep fit and active if you find yourself with extra time on your hands. Remember the days when keeping fit didn’t demand a gym membership? Stay sharp, stay healthy and stay positive.

1. Do you always go back to the dealer to have your car serviced? Smaller, independent garages will do the work a lot cheaper. It’s always a good idea to choose somewhere on the basis of a referral though. A good, reliable garage that has experience with your car is a great way to beat high dealer servicing costs but they can be hard to find.
2. When you do take your car in for its service, whether to your dealer or to an independent, don’t let them talk you into buying things that you don’t need. New wiper blades, air filters or high-performance, synthetic motor oil are all expensive extras that can, if needed, be bought cheaper elsewhere.
3. When it does come to wiper blades and that kind of thing, buy them and fit them yourself. It’s an easy job, takes no time at all and is the sort of added extra that you’ll often pay through the nose for if you leave it up to the garage to stick them on.
4. Although we’ve warned you about the inflated cost of dealer servicing, beware the false economy of dodgy garages. As we’ve said, the best way to find one is through a recommendation. When you check it out, look for a busy but well-kept garage and a mechanic that is happy to discuss the job and answer your questions. Get an estimate and make sure you sign off on costs before any work goes ahead.
5. If you find yourself replacing tires suspiciously often, or they’re wearing down unevenly, you could just be treating a symptom, rather than the real problem. Chances are you’re wasting money on tyres when you need to getting your tracking fixed, a wheel balancing, alignment or even suspension
6. Putting off problems with your car because you’re trying to save money will often just make for bigger bills later. For example, that squeak from your brakes might just be a source of aggravation right now but rather than just buying new pads, you could do damage to your disks. Of course, there is always the safety concern with your brakes too. Staying on top of thing like that will help to ensure that you’re not wasting money on costs that could be averted.
7. Keeping a record of the repairs that have been carried out on your car can help you monitor problems, like replacing tyres and brake pads too often, helping you to decide if something’s seriously wrong. Keeping the receipts can help you if the repairs go wrong too.
8. When it comes to insurance, liability is not an area you want to cut back. However, if you’ve got an old car that’s not worth very much, comprehensive insurance can effectively be a waste of money. Take the cost of a year’s insurance premium, add the excess that you’d be liable for and take it away from the value of your car. When you see the bottom line, is it worthwhile?
9. In terms of general upkeep of your car, tyres at the wrong pressure can be a huge waste of money. Improperly inflated tyres can cost you more in petrol, wear out more quickly and put you at risk of an accident.
10. Taking your car to the car wash can be a relatively expensive proposition these days. Rather than allow your dirty car to show you up though, why not wash it yourself? Take some pride in your pride and joy and get out there with the sponge and chamois. The brushes at the carwash can be quite abrasive too, so hand washing will keep the paintwork looking its best.

The summer holidays are just around the corner and as much as we look forward to those few, fleeting days of home-grown British sunshine, it’s more likely that we’re considering the possibility of jetting off to warmer climes. Well, in the wake of recession, ongoing financial woes and unemployment, you’d be forgiven for thinking that we’re all tightening our belts and looking closer to home for our summer holiday.

We’re not though. The results of a recent poll conducted by the travel specialists at Lonely Planet seem to suggest that British holidaymakers will readily forego their frugal ways when it comes to funding their summer sojourn.  Although a lot of the blame for the recession can be attributed to a general ‘buy now, pay later’ attitude to our finances, the media coverage that was devoted to the credit crunch has instilled a strong sense of credit caution. When it comes to holidays, it seems we’re ready to take a break a break from responsible spending.

About a quarter of Brits said that they would sell some of their possessions in order to fund a holiday; roughly one in ten would actually go to the length of taking out a loan or extending their overdraft to afford it. Perhaps even more telling, the survey suggested that 35% of Brits travelling abroad will be quite comfortable with putting it on their credit card and a measly 1% would let not being able to afford it put them off.

The other side of the argument is of course, that almost two thirds of those asked would not take on extra debt to pay for their holiday. Rather than buy now and pay later, they held true to the far more sensible practice of actually saving up for something before buying it. Naturally, some of those would have been willing to use a proportion of their savings on a holiday but that’s at least their money. The potential problems that they face are inherently less risky than those faced by holidaymakers who go into the red to get away.

We recommend that you have a contingency plan for any unexpected change in your financial circumstances. If you use a credit card to pay for your holiday, there’s a strong chance that it’s going to cost you more in the long run. There is also the ever present risk of unemployment in this volatile financial environment. Returning from your holiday to find that you have lost your job will make it extremely difficult to meet these repayments. So, start your summer holiday preparations far in advance by saving up for it.

If your idea of using the internet to save you money means socialising in a chat-room rather than in the pub, or the occasional search for vouchers, you’ll be surprised to hear just how much money-saving potential there is in cyberspace. Not only that, if used to its full potential, the internet can be just as good at making you money as it is at saving you money. Of course, there is no denying that the internet is particularly good at encouraging you to spend money too. So, with the help of the debt specialists at Debtsolver, you can take control of your online spending and begin getting the best return on your digital spend.

Firstly, there is no shortage of companies willing to offer incentives like vouchers and reductions for your participation in online surveys. Don’t buy things that you don’t need because they seem like a good deal though. Unnecessary spending is still just as unnecessary when you’re getting a deal. However, if it’s a product that you’d buy anyway, saving a few pounds here and there can soon add up.

Here are five survey sites that give you a financial reward for participation.

• Test and Vote – Test products and be awarded points that can be redeemed for vouchers.
• Synovate – Complete surveys for entry into prize draws and points redeemable for cash.
• Lightspeed UK – Various surveys that are rewarded with points and prize draw entries.
• The Great UK Survey – A 5 minute survey is rewarded with a £5000 competition entry.
• Valued Opinions – Build up real cash for your opinions, redeemable when you reach £10.

If you’ve got the time to scour the internet for potential bargains and take part in surveys that promise vouchers and rewards for participation, it’s easy to forget that the web offers far more tangible money making opportunities. Although being a serious savings hunter can seem like a full-time job, it isn’t. When it comes to real-life, actual job seeking, the net can be a valuable resource.

The major source of debt problems is not irresponsible spending but an unforeseen change in financial circumstances. Typically, this is losing your job. So, getting debt help, getting back on the job market and bargain hunting should be the first steps towards beating the debt burden for anyone out of employment.

Maintaining this focus on the digital world as a source of revenue, don’t forget to incorporate it into your real-life money making plans. If you’re looking around at all of those things you don’t really need and thinking about biting the bullet and doing a car boot sale, consider eBay and Amazon Marketplace too. They’re great places to offload your unwanted books, videos, CDs and lots of other things too.

So, there are lots of ways that the internet can help you to save money, or even make a bit more money, in order to lessen your debt burden. The first one though, should be to get specialist debt help from the advisors at Debtsolver.

Your debt-to-income ratio is basically an expression of the relationship between how much you owe and how much you earn. Lenders will use your debt-to-income ratio, alongside your overall credit rating, to evaluate your financial situation and decide if you qualify for credit. The ratio is determined by dividing all of your monthly debt repayments by your income. Generally speaking, the lower the ratio, the better your financial situation and the greater chance of securing credit.

If you have a clear understanding of your debt-to-income ratio, it’ll help you take stock of your financial situation, which will help you decide whether or not you should be considering further credit or debt help. If your debt-to-income ratio is high, you should definitely be taking significant steps to solve your mounting debt problem. Essentially, calculating your ratio leaves you in little doubt as to your financial situation. There is no denying the debt anymore and the sooner you face up to your debt, the greater the likelihood of finding a suitable debt solution for someone in your circumstances.

As much as calculating you debt-to-income ratio can serve as a wakeup call to the severity of your mounting debt, it can also be a great way to stay motivated and keep you on the right track. If you keep doing the calculations as you stick to a programme of debt repayment or successfully follow through with a debt solution, you can track your progress and keep your morale up.

Debtsolver, the UK debt solution specialist and financial first-aider, have complied these easy to follow steps that will help you to calculate your debt-to-income ratio.

Firstly, add up all of your monthly debt obligations. That means all of them; this is no time for self delusion.  Be sure to include all of your credit card debt; every loan, the unsecured and secured; your monthly mortgage repayments and your overdraft. If you rent rather than own, you should incorporate your rent in the same way as you would a mortgage at this stage. Basically, you want to find your bottom line debt commitment.

Now that you have your definitive monthly debt obligation worked out, divide it by your monthly income to work out your debt-to-income ratio. Debtsolver recommend using your net income rather than your gross income as everyone has to pay tax on their gross income. If you use your gross income, your debt-to-income ratio will appear more healthy than it actually is.

In the same way as your credit rating will impact on your ability to secure credit and influence the rates of interest that you’re offered, the higher your debt-to-income ratio, the less likely you are to be approved for credit and the higher interest rates you’re likely to be charged. You could also find that you’re asked to make a far bigger down payment in order to secure a mortgage.

If you are looking to tackle a debilitating debt burden, Debtsolver will be able to take you through the various debt solutions on the market in the UK and help you to decide on the one that best suits your circumstances. You will then be on the road to freedom from debt and will be able to chart your progress by calculating your debt-to-income ratio.