Prepare for job losses

David Kuo, Head of Personal Finance at Fool.co.uk, says: "Consumers should not dismiss the 4% rise in company insolvencies as a blip. 3,210 companies went bust between January and March this year, taking the twelve-month running total to over 12,500 businesses.

"Fool.co.uk urges all employees to ensure they are prepared for the worst, should their employer become insolvent. Businesses can go bust for a number of reasons, though it invariably boils down to a shortage of cash.

"As the credit crunch continues to unfold, it is not unreasonable to assume that not only consumers but businesses also will find it increasingly difficult to obtain credit.

"The days when both businesses and consumers can borrow a tenner to repay the fiver they owe are over. Lenders will now want their fiver back because they need the money too."

Fool.co.uk top tips to prepare for a redundancy

Delay buying big-ticket items especially if it's on credit
Put away three-months' wages in an emergency fund
Learn to manage on 30% less pay because you may have to
Start reducing your debts now
Consider taking out Income Protection Insurance