If your monthly salary is not covering the extra burden created by the increased food costs, gas and electricity bills, council taxes and water rates then what are the other options? For many UK families it is time to find that extra money to overcome the present difficult situation. Credit card providers are also using the ostensible ‘zero percent rate tarts’ to lure their customers to spend more through their credit cards. But, you should be aware of the rate charged by the credit card provider after the initial zero percent rate phase as the company will try to recover the money that they have lost earlier by charging higher interest rates.

The standard credit card rates these days are at 17.01 percent and the average unsecured personal loans are offered at 8.44 percent. So, the consumers should make a wise decision if they need extra money. If the credit history is good, then they can take personal loans than meeting the expenses with their credit cards. On the other hand, this is not a permanent solution to your tough financial situation and hence you need to work out some new methods to balance the income and expenditure graph.

Most of the borrowers are also embarrassed by the non-availability of cheaper mortgage deals. It is estimated that as many as 1.4 million people wanted to remortgage their loans which have higher rate of interest this year. But, the financial crunch has made the building societies and banks to pick their customers with caution. These institutions are carefully evaluating the customer’s credit record and equity before lending any mortgage loan. So, many householders are finding it difficult to switch over to another cheap deal. Also, those who are paying variable rates for their mortgages have to pay more from their pocket as the rates are hovering around 7.5 percent at this time.

The UK consumers are also facing increased car insurance premiums due to the raised petrol prices which had increased the cost of motoring. It is estimated that the premiums have gone up by 5% and you should think of some other cheaper deal if your insurance company is increasing the premium every now and then. Many insurance providers also charge for providing the monthly direct debit payment facility. So, you should add up the costs to your premium to calculate the exact amount that you are paying and then only you should sign up the car insurance deal from some other company.

To find a solution to the financial crunch you need to make a budget of the expenses that you have to meet and also try to note every penny that you spend. This will help in reducing frivolous spending and you can cut on the unnecessary expenditure. But, never take some hasty decision on a panic mode as this will further worsen the situation. Don’t get lured by the attractive offers that the financial institutions are offering; think twice prior to borrowing and calculate your repayment capacity before signing up the loan.