How to beat the credit crunch crisis

MORTGAGES
Despite the fact interest rates went down again last week, homeowners are still feeling the pinch .

Those particularly hard hit are the 1.4 million people who are coming to the end of fixed-rate deals, as the deals available now are nowhere near as competitive as a few of years ago.

But there are still some decent offers out there. HSBC is offering to match fixed rates as low as 4.54 per cent for new and existing customers.

Your existing mortgage deal must be due to end before June 30, and borrowing is limited to 80 per cent of the value of the property. There will be an arrangement fee, but HSBC says three-quarters of people will pay £999 or less. This offer closes on May 18.

Another option is a base-rate tracker mortgage, as these will follow interest rates as they fall. London & Country Mortgages recommend HSBC's deals at 0.48pc above the base rate - giving a payable rate of 5.48 per cent, which is less than the typical standard variable rate of seven per cent. Monthly payments on a 25-year repayment mortgage of £150,000 would be £1,060 at the SVR, but £919 on HSBC's rate. This deal has an arrangement fee of £599 and is only available to remortgagers.

OTHER BORROWING
We are paying more for loans and credit cards too. MoneyExpert.com found the average APR on credit card purchases has increased from 16.56 to 17.12 per cent over the past six months.

Check comparison sites such as moneyfacts.co.uk, moneysuper market.com and money expert.com for the best deals, and always take advantage of zero per cent balance transfers, like Virgin Money's credit card. Watch out for transfer fees.

SAVE SAVE SAVE
Savers are among the few people who actually have something to cheer about - it's vital to build up an emergency fund.

Banks and building societies are keen to attract new money, so they are offering some tempting rates. Always use your Isa allowance first. Barclays' Tax-Haven Isa is paying 6.31 per cent a year, so you'd earn £63 over the year if you put in £1,000.

Or consider locking into a fixed-rate savings bond - Birmingham Midshires this week launched a competitive one-year Fixed Rate Bond paying 6.76 per cent gross interest a year. Our table on the left shows current top deals.

CUT LIVING COSTS
Soaring food costs have added around £750 a year to the average family's shopping bill. Despite this, every person in the UK wastes an average of £400 of perfectly good food a year. Minimise the amount you chuck away by planning ahead.

Another way to cut costs is at www.mysupermarket.co.uk, which compares your weekly shop across Tesco, Asda, Sainsbury's and Ocado - and then transfers the whole trolley to your chosen supermarket's online checkout. The site is free and claims it can cut bills by 20 per cent.

Case study: We saved £100 on new loan
Colin Reid, 32, and his fiancee Jamie Adams, 33, saved nearly £100 when they switched mortgages last month.

The couple's 22-year repayment mortgage was on a two-year fixed rate at 4.69 per cent with Portman, and if they hadn't remortgaged they would have been paying £908 a month at the standard variable rate of 6.49pc. With the help of mortgage broker London & Country Mortgages, they are now on a two-year tracker deal with Abbey at 5.23 per cent, and monthly payments cost £814 a month.

Colin says: "Deals may be getting more expensive, but we're still better off remortgaging than going on to the SVR."