Financial House Cleaning

In recent months the term ‘double dip recession’ has gone from being a vaguely threatening concept to a rather real possibility, for all its regular use, though, what does it mean? And what are the consequences for parents?

A recession is when the economy posts two consecutive quarters of contraction. A double dip recession is two such events in (relatively) quick succession with no strong growth in between. So far, Britain has experienced one recession, and is currently going through a protracted period of barely any growth, should the economy slow down any further, then a double dip recession will indeed be on our hands.

For most people, there’s not a lot that can be done to mitigate the potential damaging effects of a second recession in a handful of years. The best option, with spring just around the corner, is to get involved in a bit of financial spring cleaning, starting with a Free Credit Report from CreditExpert.

The reason for this is that if you’re going to start hunting for better deals you need to know your credit rating before you start, this way you won’t apply for deals you can’t possibly get, and you won’t damage your credit rating further.

Start with insurance, just about every type of insurance you have can be improved. A simple trip to a comparison website like MoneySuperMarket is all you need to do to get the ball rolling. Consider simple, small things like changing your locks, or getting an immobiliser on your car, which can save a surprising amount on your premiums.

Make the most of new car insurance deals that involve fixing a GPS inside your car. These systems are controversial but they prove the quality of your driving and so can lead to drastically lower insurance bills.

Next up, get energy smart. Assuming you don’t have a lot of money to spend you can save yourself stacks of cash by heading to a DIY store and buying insulating foam. Check out internet guides for how to put it under the floorboards, and in the loft space. Also consider things like insulating jackets for your boiler which will pay itself back in less than a year.

Finally, an astonishing proportion of Brits never change financial provider on things like bank accounts, credit cards, and even mortgages. Look around for great deals, and as far as debt and savings go, be prepared to move on a year to year basis to get the best rates. It takes effort, but you can earn massive amounts of extra interest, or shave years off your mortgage.

The best way of dealing with a double dip recession is to make sure that your finances are in the best shape possible, and put any savings you do have into paying down your debts.