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Through no fault of our own during the early nineties we were plunged into financial turmoil, with four children to support and a mortgage to pay . It took time and more than a little effort but we managed to get through by employing the strategies below, very much a family team effort.

As things are generally getting worse again due to the current global problems we have decided to rein in our expenditure in order to prevent a repetition of our nineties experience. Since I have recently lost employment and although our four children are now independent we do still have elderly parents to consider as well as a mortgage. We know the methods written about here are tried and tested so will stand us in good stead.

Financial crisis, whatever goes up must come down. As most of us have been there before, common sense should prevail. The crunch to managing in these times is to know your debt, and know your priorities.

With mortgages, never get too far behind. Three months seems to be the trigger when they start looking for repossession. The secret is to write to all those you owe money too, explaining your current financial difficulty and that you intend to repay the debt. Repay a little, frequently, whenever possible, as the courts will look at your repayments. Seeking help from a debt counseling agency should help (they can supply suitable wording for letters). Never pay for advice, and never consolidate debts, as this is just as likely to cost you your home. Do not take on extra debt at extortionate interest. If you do not understand the interest level, seek independent help.

Ask your debt owners to give you reduced interest or a repayment holiday. This also applies to debts other than mortgage and credit cards. Local taxes, council charges can also be approached in this way.Do not wait for the inevitable, act now. If you get a letter from a bailiff or debt agency act immediately, seek help. Hiding letters and failing to recognize the issue will only make things worse.

If you have assets you can sell, do it, but do it wisely. Don't give your things away. Take jewelry, antiques, and expensive items to a reputable auction to sell. Unwanted household goods and clothes could be sold on an Internet auction site. We did this and also encouraged the kids to sell their unwanted things in this way. They enjoyed watching with us as the bids grew and then the reward of payment. Car boots too became an outlet to sell such things and the children enjoyed helping to be shopkeepers

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