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The credit crunch could result in losses of £472bn or even higher, according to a report from the International Monetary Fund (IMF), recently released to the BBC.

The IMF’s Global Stability Report points to a “collective failure” of financial institutions in appreciating the risks of borrowing, warning that it may be necessary for the government to intervene by imposing even tougher financial measures.

Indicating that losses are spreading out from the sub-prime mortgage assets to the commercial property sector, consumer credit and company debt, the Report also states that “despite unprecedented intervention by major central banks, financial markets still remain under considerable strain”.

Even so, despite its call for tougher measures, the Report also warns against “a rush to regulate”, which could suppress innovation and worsen the effects of the credit crunch.

Although the Bank of England has now maintained its nominal bank rate at 5.75% for the second consecutive month, it has also, for the first time in over eight years, issued a statement alongside the decision, almost certainly as a means of attempting to quell further market turbulence.

A further report from the BBC in the last week highlights the scale of the current debt concern, with figures suggesting that the country as a whole now owes £140bn in credit cards and personal loans – equating to around £2,000 owed by every adult and child in the country.

Clearly, with interest rates at an eight-year high, and the overall UK debt burden at a record 10-year high, the effects of the credit crunch are already trickling down to ordinary members of the public.

An illustration of this is that recorded debt enquiries to Citizens Advice Bureaux in both England and Wales have reached a record high, with an increase of 20% on the previous year and hoisting the total in 2006/7 to 1.7 million, a doubling of the number of debt problems brought to the Bureaux over the last 10 years.

In a frightening indictment of the present financial climate, Moneyweek’s recently published special report declares: “In short, things are going to get nasty. Your job, your house, your savings, your comfortable life style, as well as your family’s future, and your retirement plans are all seriously under threat.”

Registering a sharp rise in calls from those hoping to establish Individual Voluntary Arrangements (IVAs), or seeking assistance in devising debt management plans or simply from those desperate for financial advice, as part of their portfolio of free services, Debt Counsellors are urging categorically that those experiencing financial worries should seek professional advice as early as possible, as unsecured and secured loans, mortgages and other forms of refinancing are becoming increasingly difficult to find.

This has apparently been borne out by figures suggesting that the number of applications being turned down for credit cards has risen sharply, whilst at the same time many companies are increasing both the fees and the rates they are charging.

The financial website MoneyExpert.com put the number of rejected credit card applications in the six months to the end of last September at 3.27 million, 17% higher than throughout the previous six months.

Other facts and figures also emerging from the torrent of information seemingly unleashed by the arrival of the credit crunch is the finding by the financial comparison website Uswitch that over five million people, or one in 10 adults, spend more money than they actually earn on a monthly basis, and that a further one-fifth of all adults have no money at all to spare at the end of each month. The website also added that half of those who live beyond their means rely entirely on overdrafts and credit cards, concluding that the UK is in the grip of a “spendemic” which is at risk of spiralling out of control.

Trying to save money wherever you can is important to us all. Car insurance should be no different. Do not assume that your agent knows everything about you and your vehicle.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.