Every newspaper and every news reports tells us we are in the grip of the start of a recession, but for many of us we do not need the media to tell us about the recession many of us are living with it from day to day. This year has seen a large increase in home repossessions,  those looking for debt management help and advice and even an increase in the number of people being declared or filing for bankruptcy.

Many household consumables have increased in priced over the last 6 months, most of us are struggling with increased utility costs and as the winter draws in, many people have to choose whether to eat or heat their homes. So how do we manage, is it possible to cut back on unnecessary spending and try to make savings? The answer is yes, there are steps we can all take to spend less and even save some money.

How do we cut down on unnecessary spending and make savings? The key to this is honesty and budgeting. We need to look at our household expenses and spending, identify the essential items and reduce the extras. When we have identified what we spend our money on we can take steps to reduce our spending, we need to agree our budget and look for the best deals. Perhaps we need to look at simple things like our mobile phone contract, or our broadband/telephone package and look for better deals. Perhaps we need to remove some non-essential luxuries such as satellite television packages or even buying non-branded goods when we do our shopping.

We have to be totally honest about our spending, if we hide things we are only bluffing ourselves and this will not help us make savings. There are lots of competitive deals around on things such as insurance, so we have to make sure we are getting the best possible deal. Where possible we should also use cash back sites to make our purchases, making sure we earn something from the essentials that we need to buy. We should all be trying to reduce our carbon footprint to save the planet, but this may also help us to economise on our food and heating bills, if we use less we will spend less.

Because the current economic climate is so gloomy we need to be actively reducing our current debt, this will enable us to make greater savings when the economy perks up.

What is a personal loan? Some key points:

1) Either money or items that you have borrowed from someone, may it be an individual, group or organization

2) Consists of relatively high interest. If interest is low, it is likely more of someone doing a favor to you.

3) The creditor has a motive for loaning, mainly getting more interest or bonds.

4) Loan is usually taken to do something constructive and have long term benefits, example setting up business, renovating houses, furthering education, etc.

5) Personal loan is more flexible and can be used for personal consumption benefits

6) Unsecured personal loans are not productive in long run because they have very high interest rate and only very high risk investment can offset this interest.

7) Personal loans should be taken at the appropriate times to invest in long term investments, example real estates or shares for greater profits.

Loans should be taken when purchasing expensive necessity, for example buying cars. However, aim for low interest loans.

Home improvement loans can be an excellent way to add value to your home as long as they are spent wisely. Often mortgage companies will allow you to borrow extra for home improvement and this can be the cheapest way of borrowing as long as you do not end up paying the loan for the full 25 year term. Negotiate wisely.

Next it’s important to ensure that the work that you are doing to improve your home will actually add value. Generally speaking adding square feet, for example extra rooms, will always add value. Smartly fitted bathrooms and kitchens add value too as does installing central heating in an older property. New windows and conservatories often cost far more to buy that they add to the value of your home so make sure you do your homework to ensure that you are not wasting time and effort. Local estate agents have the best knowledge of your area. Don’t be afraid to ask for their advice. They know what sells properties and what are just regarded as nice extras.

Finally, don’t go over the top with your home improvement ideas. Your house is only worth what the area and street dictate, and don’t get too personal and flamboyant with the designs. Not everyone will appreciate your great taste.

Home improvement loans are loans taken out specifically for the purposes of spending the money on your home to make it better. In general most home improvements will add value to your home, but you do need to consider the amount you will be paying - including the interest on repayments, when calculating whether the improvements are worth the time and money.

Home improvements loans are best taken out when it is essential to improve part of your home. Bathrooms and kitchens are big winners in terms of adding values - these often help sell a home, and a clean, fresh modern look can add a lot of money - often more than the cost of the room itself, plus your repayments.

However not all improvements will add money. Any improvements you make should be in keeping with the style of the property, and to really add value you should aim to make sure that you consider the tastes of your prospective buyers, should you decide to sell. It is also important to consider whether a bathroom or kitchen really needs replaced - if it is already quite modern, then the extra value added may not be as much as the loan.

Debt is a serious issue, and has serious consequences. If you are in debt it is important to look for debt help.

Although it can be hard to come to terms with the fact that you are in financial difficulty, once you do this you are opening yourself up to a lot of resources that can help you get back on the straight and narrow.

There are many companies that offer credit cards or loans to assist you with eliminating your debt, but rather than commit yourself to further borrowing it is better to speak to somebody about your options. There are confidential debt lines with trained staff that work with you to look at your options, their aim is to help you be debt free, and so who better to speak to? By talking to these people you will become more informed about what you can do and begin to relieve some of the stress related to being in debt.

Student loans are a necessity for almost all students. And while starting your working life with a large debt is hardly ideal, student loans are one of the best types of loan available.

The APR of a student loan is the same as the rate of inflation. So effectively, the size of your debt never increases. If your debt at the end of your time as a student will buy you a small car, then after 10 years, although the amount of money may have increased it will still buy you a small car, as the price of the car will have increased at the same rate.

No other bank loan will have such a low APR, because the student loans company does not make a profit while all other loan providers must.

A student loan is the wisest debt to have if you must have one. After you graduate, it’s up to you to make sure you get the help and advice you need to get out of debt.

Student loans are the spawn of Satan. I was unable to find a job after my studies were complete and I seem to have this huge loan hanging over my head. Because of the length of time that you are allowed to take the loan over it sits in the background until you are working and then bang your supposed to pay it back. I understand that the rates are favourable, there inst really a rush to pay it back but just knowing its there for so long makes me feel particularly nervous.

I like to be able to pay my own way, but a student loan was deemed to be the answers to all evils and wouldn’tt be any hassle at all. For me its just a big mill stone around my neck and its a stress that I could live without when I’m trying to find a decent job. In truth I never spent it on anything worthwhile, I borrowed more than I should of to pay the course materials and the day to day living and squandered more of it than I should of done. I am truly paying the price for it now.

Student loans are definitely good: as a third year student its very hard to get through all the course work, hold down a day job and pay all your bills.

Without a student loan I would not be able to keep a roof over my head as I am studying away from home. I would not be able to afford the course materials and I would be eating pot noodles seven days a week rather the three days a week I am eating them just now.

I understand that I will have to pay it back one day, but by that time I will be in a good job with a reasonable salary and I will be in a position to do so. The long term nature and the low interest rate of the loan makes this an ideal way for me to get through my studies without putting myself into dangerous debt elsewhere.

Get debt help. It is so easy to get into debt, but not as easy to get out of it.

The first thing you need to do to get debt free is set a realistic household budget. List all things you have to spend money on i.e Gas - Electric, mortgage, then list all the things you want to spend money on. The goal is to separate between ‘Need’ and ‘Want’ for example you ‘need’ to eat or you ‘want’ that new cd.

The idea is to look at you outgoings and see where you can make cut backs, set yourself a shopping budget for food. Some examples of how to save money on groceries, household bills.

1. Ask your supermarket what time they mark down there products, and purchase these when they are cheaper. Most things can be frozen to restore the sell by date.

2. Grow your own vegetables and fruit alot cheaper than buying.

3. Use price comparisions sites to check you are not paying to much for your gas - electric or mortgage.

4. Check with your enegry supplier to see if you have an economy setting, do you washing etc in the evening as it is cheaper.

5. Take a shower instead of a bath, its cheaper.

6. Do you really need the heating on ? Can you just put on another layer of clothing.

7. Hang clothes to dry on a rainy day indoors over the bath or use a clothes airer, its cheaper than the tumble dryer or radiators.

8. Use natural products for cleaning its cheaper and better for your health !! I.e Vinegar for cleaning windows.

Overall just think about ways to do things on the cheap, research and you will be saving money and getting out of debt.

Remember pennies make pounds and pounds make rich men !!!

In addition to the standard ‘write and stick to budget’ there are a number of further ways to help you stay out of debt. One of the most effective ways is to carefully think about whether you actually need to make a purchase - don’t just buy something because it’s on sale, on offer or because you’ve fallen madly in love with it at first sight. If after a lot of careful deliberation you realise that you do need it - then if you don’t have the money, save up for it. Remember that by paying for anything with borrowed money, you’ll end up paying a lot more than the price tag once you add on all that interest.

Another great way to stop impulse purchases causing debt is to freeze your credit cards - Seal them carefully in a freezer bag, and then put this bag into some water to freeze. Your cards will still be there when you need them - but the time taken for them to thaw out gives you thinking time about whether you really need to use them.

If you can afford it put a small amount of money away each week or each month. No matter how small, eventually this will mount up to a nice little pot to help cover any rainy day emergencies. Make sure that this money is put in a high interest savings account - and put the first £3000 in a cash ISA to avoid paying tax on your savings.