I'm very concerned for the UK economy in 2008 and the damage that could very well be inflicted on UK consumers carrying debt.

The "credit crunch" which is now global is impacting a lot of people. In the U.S. it can clearly been seen in rapidly falling home values, as much as 19% of home value in some major markets, a tightening of the ability for people to get mortgages and a growing desert of unsecured credit opportunities. Even the foreclosure or home repossession rates are sky high this year compared to many, many years before.

Consumer debtors in the UK have yet to begin to feel the intense pain of massive debt problems. This isn't becuase they have been avoiding going into debt. Not true. UK consumers have embraced consumer debt with vigor and gusto and are nearly twice as indebted as the rest of Europe.

Up till now what has kept this lead boat afloat has been the constant pumping in of more credit to continue to fund unafforable lives on yet more borrowed money.

Unsecured loans were are somewhat reasonable rates but the credit crunch is putting a squeeze on those loans in the UK. Instead, secured loans are rising this year at a rapid rate as debtors put their homes at risk to borrow the last bit of cash that they can to prop up their lead narrow boat.

With fuel and food prices rising noticably and outpacing wages, it should not take much longer for UK consumers to simply not be able to manae this burden of debt.

Soon it won't be a choice of taking a holiday in the Caribbean or the Maldives but rather, do we make the car payment or mortgage payment.

Unless UK debtors begin to shed debt now, the looming financial pain could be severe. I certainly don't want to be an unnecessary alarmist, screaming the sky is falling, but if the conditions were to be right for a pending financial disaster for consumers, this would be it.

Tips and Suggestions You Can Take Advantage of Right Now.

1. Pay off low balance credit obligations now. By eliminating those small debts you can devote the monthly minimum payments on those obligations towards other debts or use that freed-up money to save.

2. Shed debt. If you have a mortgage it is not reasonable to expect you to consider moving to cheaper accommodations but if you own a car with financing, consider trading in the car on a cheaper auto if you can find a hire purchase deal that leaves you will a significantly cheaper monthly payment.

3. Get thrifty. Start looking for bargains and deals where you shop for food. Use coupons. Take advantage of specials.

4. Put large discretionary expenses on hold for now. Prepare to weather the storm and once through the other side, take that expensive dream holiday latter.

5. Save as much cash as you can. In rough times having money in the bank is a real blessing. Start trying to put away money each month now. If you find yourself putting money in your savings account and then taking it out again the same month, you are trying to save too much. Trim your saving limits so you don't have to go back into the money you just put in the bank.