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Credit Crunch Shopping Tips

Date Added: September 16, 2009 03:09:04 AM
Author: Neil Durant
Category: Business & Economy: Consultancy
The current credit crunch first reared its ugly head in the summer months of 2007, when an increasing lack of investor confidence in the American mortgage market lead to a reduction in the availability of credit, necessitating an injection of capital into financial markets by the US Federal Reserve, Bank of England and the European Central Bank. The resulting fragility of the economic market caused continued to worsen, and in September 2008 stock-markets across the globe began to crash. Consequently many countries - such as the USA, the UK, Germany, France, South Africa and Japan - all officially went into recession, a situation which had, and continues to have, hugely far reaching repercussions. Lenders are attempting to protect themselves from the effects of the financial crisis meaning consumers now find it more difficult to obtain credit. Interests rates on financial products and services such as loans, credit cards and mortgages are increasing, whilst interest on saving have plummeted to an all-time low. This all basically means that money is tighter than ever - everything is becoming more expensive, yet money is less readily available, and households are working to an ever-tighter budget.

There are, however, a number of handy shopping tips that can be followed to make the pennies stretch a little further, such as avoiding impulse buying, taking advantage of two-for-one offers, venturing into charity shops, and substituting well-known brands and designer labels for less expensive alternatives.

Perhaps the best advice for those wishing to save money when shopping is to shop online. As well as being convenient, shopping online offers a number of financial benefits when compared with hitting the high street, starting with the fact that online shopping negates the need to pay for buses, petrol or parking tickets. Generally products and services can also be found cheaper online than you will be able to find them in the shops, as retailers can offer better deals due to fewer overheads. The best deal available can often be located by using a price comparison website, as these will trawl through the internet for you to identify the best price available for your chosen product. Online shopping also prevents the temptation of buying something you didn`t originally set out to purchase but spot in a store and are unable to resist.

Perhaps one of the best ways to save money - or even make free cash - whilst shopping online is by joining an internet cash back websight. If you shop online via a cash back website, the website receives a commission from the retailer, and a percentage of this commission is then paid back to the shopper, generally in the form of vouchers. The money you pay for the product or service is the same as it would be were you not to shop via a cash back website, but by joining a cash back website you are simply able to get more value from your money.


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