How to gear up for a slowdown

• Try to pay off debt, concentrating on the most expensive loans first; store cards are still charging up to nearly 30 per cent. Consider switching to a card lender offering cheap debt transfer rates, but check how long the rate lasts. Don't clock up new debt if you can avoid it, but do switch cards again if can take advantage of another introductory deal to help you repay the debt.

• If you are simply paying off the minimum amount on credit cards, look at how you can increase payments. If you cannot, take this as a sign you may already be in difficulty and may need specialist advice.

• Consider remortgaging. With rates at a 40-year low, look at locking into a low fixed-rate deal if you're on a tight budget (see page 10). Lenders are also keen to reduce the amount of discounted lending they do, so competition in the market may diminish, reducing the choice of deals later this year.

• If you have savings, consider using some to pay off debt, including mortgage debt. Even at today's low rates, the "returns" from repaying mortgage debt are higher than on most savings accounts. This form of investment is also tax free.

• If you are moving, particularly if you are an inexperienced first-time buyer, consider carefully the extra costs you face in running and maintaining a home, in addition to the mortgage. Consider taking a loan over a 20- or even 15-year term, rather than the traditional 25, to repay debt more quickly. Monthly payments will be higher, but the long term savings will be substantial. If you do become stretched, most lenders will consider allowing you to extend the term for a time.