Don’t despair – make sure you prepare!

There is little doubt that the next 12 months are going to be tough for Britain’s consumers. There will be a lot of belt tightening for people – but my message is don’t despair – make sure you prepare. An extra bit of financial preparation and smarter thinking will help millions of people out of what could be a sticky situation.

Jim Spowart of Peopleschampion.com offers his top ten ways of saving money in 2008.

1. First up – you must review your electricity and gas bills. Energy prices are rising – and a barrel of oil is likely to continue to rise. If you haven’t switched, then get out your energy bills, work out how much you’ve paid in 2007, then find a better deal for 2008.

2. Check out your credit cards. Work out exactly how much Christmas and New Year has cost you. Keep up your payments to build a better credit record. Search for the best deals, so that you are not being hit by punitive interest rates. Check out Peopleschampion.com for the best deals.

3. Avoid mortgage misery by reviewing your home loan. If your fixed rate deal is ending soon, start looking now. Find a lender with a secure reputation – and talk to someone who understands your situation. But don’t panic – and end up spending on comfort items you don’t need.

4. Look at your motor insurance. If you’ve had a few years of no-claims then you shouldn’t be paying a hefty premium. There are insurance companies willing to help – and they are not always the names that you’d expect.

5. Did you get a new flat-screen TV for Christmas? What about the i-Pods and cameras? Are you properly insured for the loss of these items? Walk around the house and tally up your valuables – you’d be surprised how much it’s all worth. Then check out the internet for the best deals on contents insurance.

6. What about your home insurance too? Has the cost of your home risen – make sure that your insurance covers this too. It’s still an easy way of saving a few hundred a year if you find a better deal.

7. If you have any savings, then you should really be thinking about an offset product that ties your mortgage in with your savings. It might well mean that you can pay off your mortgage years earlier.

8. Planning a summer holiday? You’ll find some outstanding internet bargains on hotels, car hire and flights if you book sooner, rather than later.

9. Your mobile phone is one expensive item – even if you are a text-messaging fiend. Make sure you’ve got the best tariff for your usage. Most people are overpaying for the amount of use they make and the phone companies are creaming it in. Don’t throw away cash – check out your contract and your phone deal.

10. Make it a habit to check out the price comparison websites. This year will be very volatile and the major companies will be much more choosy about when they announce special deals. You’ve got to be ready to make the most of the opportunities.