The average credit card holder in Britain is in over £2000 of debt. We spent years buying what we wanted when we wanted it but it’s clear from the recent slump in retail sales that the time has come to tighten our purse strings and rein in our spending. Here are a few tips on how to ride out the recession by saving your money and making the most of what you already have.

Mortgage: For a lot of people, their mortgage is their most expensive outgoing. Your home is probably the most important thing you own, and definitely something that it is worth taking out a loan for. But that doesn’t mean it’s an inevitable burden we all have to bear. Shop around a bit and make sure your deal really is the best one for your situation. There are thousands of alternatives out there, you just need to make sure you’re getting the most out of what's available. Overpayments are not a bad thing – if you find yourself with a bit of extra cash to spare, don’t keep it aside to fritter away on things you don’t need, make extra payments on your mortgage whenever you can and you could save thousands on interest in the long term.

Credit cards: Just resist. Try not to spend money you don’t have, if you won't be able to afford to pay it off that month, just don’t buy it. Try to pay off any debt you owe as quickly as possible (don’t just pay the minimum each month if you can afford more) and if you don’t think you can resist spending more on your cards again, cut them up. Just don’t go beyond your means.

Car: Owning a car is a really expensive business. It’s not just the cost of the car itself, but road tax, maintenance, insurance, servicing, MOT… And the list goes on. Think carefully about whether or not you really need a car. If you can’t live without one it might be worth considering a car contract hire agreement instead of buying one outright. You pay the car off in manageable monthly instalments and often they will throw in other additional extras like road tax or servicing costs as well. You just have to find the best deal. And the best thing is that often the more desirable car you choose with contract hire the better deals you can get – you could find yourself with a car you would never have been able to afford to buy outright, even in better times!

Sell Sell Sell!: If you have clutter and unused junk around your house, don’t just ignore it or dump it off at your local charity shop. If you’ve got a cupboard full of clothes you don’t wear or gadgets you thought would be useful but never used, there will be someone out there who will want them. Ebay is brilliant, it’s quick and easy and once you get a bit of practise at how to advertise on there you could find that you could make a nice little extra bit of cash out of your old junk. Give it a go - you’ll never know unless you try!