The economic crisis has hit us all. Even the UKs largest companies are struggling under the pressure to succeed.

Recent reports suggest that Vodafone are about to make jobs cuts in the form of 500 positions. This is an alarming figure as mobile phones have avoided the recession up until now. The reason for this is the importance many people put on their mobile and all its functions.

After Woolworths going bankrupt just over a month ago, many more smaller firms have followed as "Closing down Sale- All must go!" being a regular sight on many highstreets throughout Britain.

So what does the future hold for the UK's largest companies? The truth is that it still remains uncertain. How these companies manage themselves internally as well as externally will decide on the future for these multinational conglomerates.

For customers, prices on every day items can be found at reasonable prices if they take their time to look. Online shopping has become extremely popular as we become more internet savvy, consider shopping online where there are an abundance of sites where you can compare prices on a range of goods.

It is the end for Woolworths! after operating on a debt of also £350million and coupled with the poor state of the economy the company went bust with the last of its stores closing on the 5th January.

Over 30000 jobs are set to be lost if a buyer can not be found so many of Woolworths shareholders are desperately trying to seek out a buyer. This is bad news for Woolworths who have been very popular over the past 20 years and as they offer a range of products, have become very popular amongst many different customer segments.

The same has happend to furniture company MFI who have also entered into administration. Suppliers have found it hard to offer the same prices and with demand falling by the day and creditors knocking the door down for money, there was no other option but to enter into administration.

This is bad news for the industry as a whole because who knows what other shops will follow suit. The reduction in VAT is hopefully going to persuade customers to head back to the shops but many people worry the level of VAT by 2010 which is reported to be around 20%.

The government has recently revealed plans to help the ailing economy by reducing VAT to 15%. This is to encourage customers to head back to the shops this Christmas and start spending again. In January 2010, this lost money on behalf of the government will then need to be repaid which has led many people to suggest that this is not a plan that is going to help in the long run.

The largest shops on UK highstreets are set to pass on this VAT reduction although many are doing it reluctantly. The likes of Boots, M&S and Next are passing on the reduction but say that this is not as easy as people think.

Tesco are also passing on the VAT reduction amidst hopes that this will encourage customers to start spending again at a time when the economy needs it the most. 

The recent government bail-out lifted the spirits of the UK public, the financial markets were looking like they were on their way back again after they agreed to sell a percentage share to the government in exchange for their debts to be eliminated.

Since then, things have begun to change. We saw the first reductions in the petrol industry last month for a year as prices fell below the pound mark. Supermarkets lead the way and as Gordon Brown urged the leading providers to follow suit, the likes of BP did exactly that. The Base rate is set to be cut to 2% which would be its lowest since the 50's with interest rates being close to 0!!

So is the economy on its way up? No, is the simple answer. British companies as well as some of the leading firms in the world still have large debts they need to pay off. As we all look to save some extra cash, banks and lending firms alike are trying to reduce the rates but at the moment, the financial market will simply not allow it.

The government has decided to step in and take action about the problems with the British economy. Rising interest rates and banks closing down left, right and centre has persuaded the Gordon Brown and his team of financial experts to do something.

This "something" has come in the form of a £500 million investment into 8 of the leading UK banks including HBOS, Barclays and Royal Bank of Scotland. The governement has brought shares in each and the banks have been nationalised. The government has also wiped out nearly £250m worth of debt that existed between the banks. They hope to regain this money once the economy has been stabilised but when will this be?

Nobody knows for certain, some experts predict that it will take the economy a year to see the first signs of improvement and some others say 2 or 3 years for a complete recovery.

The UK government has invested this money in the hope it will help the economy. Many other European and world leaders have followed suit in an attempt to help the flailing economy. The hope is that it will reduce interest rates which have risen to record highs recently and encourage people to start borrowing again. Banks were funded by people taking regular trips to take out credit or loans but due to the financial situation, this confidence evapourated and eventually slowed down.

However long it takes for the world economy to recover from the credit crisis, we all need to learn from our mistakes to ensure it never happens again.

The shocking news of the collapse of Britain 3rd largest travel agent came this week on the back of weeks of speculation. Many tourists were left stranded in many countries such as Portugal and Italy. Thousands had no way of getting back to the UK and even those who could had to wait hours if not days for a replacement.

Travel insurers phones were going mad as furious/confused customers were ringing and asking about refunds. The answer is simple; if you booked your flights with your credit card (as the majority did) then your credit card company will reimburse you. The problem was arising when tourists were booking individual parts, such as flights with one company and hotels with another because there would have been nothing done to accommodate you. If you had booked a package holiday, then you may have been able to get some sort of accommodation sorted out instead of you having to sleep in the airport whilst you wait for a replacement plane.

The collapse of Lehmann Brothers shuck America but the news that AIG (one of the largest American insurers) is facing serious financial problems has hit harder. This is an unthinkable outcome with the after-effects of a collapse being uncomprehensible.

AIG is seeing a decrease in revenues by the day and as such, its share price is diminshing daily. AIG supports many local and national companies and if they were to go out of business, the shockwaves would be felt throughout the world. Their shareholders are all holding their breath in hope (more than expectation) that things improve soon.

They are also the major sponsor of Manchester United but the effects of that are unknown on both parties.

Many british companies are experiencing economic difficulties thanks to the recent environment. Alliance & Leicester were the first major casualties of the credit crunch and since then XL have followed suit. Due to the nature and size of the company, Alliance & Leicester were nationalised by the governement, but many customers were hit hard.

After the Alliance and Leicester fiasco, another bank has gone down the same road. Bradford and Bingley are the latest high profile bank to fall by the wayside. After months and months of economic instability, they have been nationalised in the same way A&L were.

It is unknown whether there will be any more high profile collapses but one thing is for certain, for the British economy to survive we need this financial situation to take a turn for the better as soon as possible if we are to avoid recession.

Until then, keep a close track of your finances. Budgetting is the best way to find any unnecessary expenses, finding an alternative deal for things such as car insurance, utility bills and food will help you save money.

The credit crunch has affected us all and has had effect on our day to day spending. Our finances have been stretched as of late due to the increase in the prices of day to day things such as food and drink. Running a car is even more expensive than it was, rising petrol prices and premiums mean that people are struggling to keep their cars insured and running.

Credit cards and other forms of finance have also been hit with many people cutting back on luxury items and concentrating on saving what they have as that rainy day is fast approaching. Many people advise to sit it out and ride the storm but there is a better way to get through this hard time. Budgetting will enable you to look properly at your finances and whats going out. Can you afford everything you are currently buying or could the Sky TV be put on hold for a few months? magazines and other luxuries like takeaways and perfumes can surely be lived without for a while?

Whichever way you decide to spend the credit crunch make sure you spend wisely and don't waste your money as you will soon see it disappear.

Some people spend all their lives explaining about credit cards but here are a few plus points and negative ones too about credit cards;

Plus Points:

+ you can have the money to do more things you want.

+ use for extra cash to pay important bills.

+ able to get great deals at competitive repayment periods.

Negative points:

- if used irresponisbly, could end in a a large amount of debt.

- can dent your chances of obtaining finance in the future

- may lose the collateral, normally your house

Its something I have constantly said but its so important to make sure you use your credit card responsibly and use it only for emergencies because if you get into debt, it will have a detrimental effect on your chances of obtaining finance in the future (a mortgage for example).

The recent acquisition of Alliance & Leicester by the Spanish giants Santander Group shows the state the financial industry in the UK is in at the moment. The bid was only £1.5bn which is nothing compared to the actual valuation of the company.

This could actually help customers who have a deal with Alliance & Leicester as the Santander Group could use their financial muscle to help bring the value of mortgages in the UK back to where they were. Customers are constantly asking what will happen to their current deals and the answer is simple, nothing. Deals signed at a fixed rate have to remain at that rate so there is nothing for customers to worry about.

Sometimes in Britain, we get comfortable with what we have. This is the same for financial products such as credit cards, mortgages and loans, many people take up a certain policy from a provider then simply pay their monthly bills without considering that there may be better offer somewhere else.

Many people are sceptical about financial products as it is without adding switching providers into the equation. However, if you have not renewed your policy within the last 5 years, then chances are that there is a better offer just waiting for you. So why not search around and have a look.

Everyone uses the internet nowadays for everything from buying your groceries to signing up for credit cards. This means there is everything you need to find or upgrade your policy, there are many ways to compare deals and you can do this at the click of a button! so what are you waiting for, ypu may be pleasantly surprised

In the past, when there was a problem with your credit card abroad, you had to deal with the problem in that specific country. This meant that if there was a case of credit card fraud in Spain, you had to claim against a foreign entity such as a hotel, car hire company etc, however customers can now hold the companies responsible for the problems they have abroad.

This makes the whole process of claiming infinitely easier because you are dealing with a provider in your own country which instantly makes things easier and reduces the hassle that credit card fraud creates.

The catch is that the transaction must be between £100 and £30,000. The most important thing you have to do before making a claim is to gather evidence. Any photos with the incident are very useful along with witnesses that may have seen what happened, if you do have witnesses, be sure to take their names and contact details so the companies and/or police can get in contact with them for statements.

Any other expenses that you incurred needs receipts and one of the most important things to remember is to get a police report because this carries a significant amount of backing to your claim and will help move the process along.

One mistake people make is they do not really consider the situation they are in. One of the most important things to do when your in debt is to sit down and get a good idea of what you are spending on what. Budgetting ensures that you spend less on unnecessary items such as magazines, CD's and games and concentrate on paying the important things in life such as gas and electricity bills and repayments on outstanding loans.

A consolidation loan can help you do this, these loans bring together all your other debts into one monthly sum. This is extremely helpful because you only have to pay one creditor and it is easier to see the amount that is coming out of your bank each month. The amount you need to pay is normally smaller as well which is a bonus!

Whatever way you choose, make sure you budget and reduce the spending on material things. I'm sure you can go without Sky for few months or reduce the tariff on your mobile, you will be amazed how much you can save by cutting down on unnecessary purchases.

Many people dream of doing certain things that they just can not afford. Whether it is the extension on the house that you have always wanted, a dream holiday to an exotic paradise or something a bit more serious and you need to pay off some important bills. Whatever it is, a credit card can really help...if you use it wisely!

Many people have turned to credit card companies in their hour of need and you could do the same. As previously mentioned by everyone under the sun, credit cards are only useful if you use them responsiby and this is definately true as many people have unfortuately found out. Sometimes you just need some extra funds and credit cards provide you with exactly that.

Companies that offer 0% on balance transfers is a good place to start but to get a more thourough quote the best thing to do is shop online. I recently used Moneysupermarket.com (to go to the website click on of the credit card links) and I found some great offers. I recommend the site simply because I received a quote in about 5 mins!

This may not seem like a surprise that London is the worse place in the UK for credit card fraud but on closer look it is somewhat revealing. Just over a year ago when the results were last published, London was fifth with Birmingham occupying the not so enviable title of worst place for credit card fraud.

This suggest that the number of credit card fraud has risen dramatically in London during the past year simply because the recorded incidents must have been considerably higher than the other cities ahead of London in order for them to jump 4 places into first.

This serves as further proof (if there needed to be any more) to why you need to be extra careful when using your credit card, particularly online.

In a world where we all want everything for cheap, choosing one company to provide you with all your insurance needs may end up saving you hundreds of pounds. For example, if you choose your car insurance and home insurance from the same insurer, you likely receive a discount. Financial companies that offer various kinds of financial products are more likely to offer a discount when buying 2 or more of their products because they like to reward loyal customers.

The best way to find these kind of offers is to shop online where you can find loads of good deals and compare the best of them. We all need insurance and are bound to need a loan or credit card at some point in our lives, so make sure that when you do, you know where to look and what to look for.

The credit crunch has hit the financial industry hard yet again with First Plus anouncing they will not be accepting any new business from 9th August. This means customers have got just about 3 weeks to take advantage of the deals they have on offer.

First Plus, part of Barclays, has reinsured existing customers that the service they receive will not change but this has been done in an attempt to continue the good level of service they currently offer. This came as a big shock to many people and has affected many kinds of customer and business alike.