| In the midst of a credit crunch lenders usually stop lending and start collecting money -they are cautious of any potential bankruptcies and/or mortgage defaults.
Many factors are responsible for what they call a 'credit crunch' situation. Luckily, there are may options to help us through it!
Here are several of our suggestions...
1.Plan a house budget to regulate spending. Compare the monthly income and expenses. If the expenses exceed the income, start cutting down the non-essential expenses such as for entertainment, travel, eating out, etc.
2.If you are trying to pay off the bills using your credit card, do not continue to use it. Instead pay by giving cash or using a debit card so that you will get a control over the expenses. If you have to use a credit card, use one with the lowest interest rate.
3.Give up some of the daily spending to save some money.
4.Prioritise the repayment of your debt. Pay the highest interest rate balances first.
5.Ask your creditors to reduce the current interest rates if possible.
6.Make an advance payment when ever possible for the high interest loans.
7.If you cannot make any progress on reducing your debt, call a credit card counseling agency for help. | 
