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The credit crunch is biting many families hard these days - but the news isn't all bad. There are still ways you can survive (and thrive!) in these difficult economic times.

Let's look at some things you can do right now to ease the squeeze.

1. Negotiate Your Rates

Take a hard look at the interest rates you're being charged on any personal debt or credit cards. Credit cards are charged at notoriously high rates so look at which accounts are suffering under high interest charges and consider negotiating with your current lender. Be honest and let them know you're considering leaving them for a lender with better rates. They'll want to negotiate to keep your business.

If you current lender won't reduce rates or even negotiate, don't be afraid to call around and compare different lenders.

The drop in costs could potentially drop your repayment amounts and increase your cash-flow each month!

2. Refinance

Lending products change with the times. What you may have considered a great deal a couple of years ago might now be an out-dated loan product. Check out what other lenders are offering. You might find a lender with lower fees, lower rates and easier terms.

Remember to check any hidden fees, establishment costs or undisclosed exit fees before making the change. Don't be afraid to ask plenty of questions. This is all about your money so you deserve to know all the answers.

Switching to a better product could see your repayments drop and this could also save you a lot of money!

3. Budget

Nobody likes this word - but budgeting in these difficult times is a necessity if you want to get ahead and stay ahead.

Take a close look at your spending habits and consider if there are any areas you could perhaps cut back on. Switch to generic brands, cut back on coffee and take-out meals, use email instead of your cell phone - there are any number of things that you only need to cut back a little.

You don't need to live like a pauper in order to cut back on spending. You just need to be careful about where your money goes.

Even small sacrifices can make a huge difference to your overall cash-flow.

4. Lay-Away

If you've gone to the trouble to get your credit card debt under control, the last thing you want to do is buy more things on credit.

Why not take advantage of the lay-away system in the stores? This means you're buying the same items but you're paying no interest on them. It also means you're forced to make small payments on a regular basis, which is a great way to teach yourself to save.

5. Get Moving

Running a car is getting more expensive every day. The cost of fuel is high so consider ways to cut your travel costs. Perhaps take the bus or train. Offer to car pool with a co-worker. Ride a bike. If you don't have far to go, take a walk.

By only using your car for necessary trips, you could cut your travel running costs in half.

These are just a few options for cutting your costs and getting ahead in these difficult times. I'm sure there are many, many more things you can think of that will help as well.

The important point to remember is that even small changes can really help out, so consider what changed you could make and you could see yourself escaping the credit crunch sooner than you think!

Learn more about this author, Bianca Raven.
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