In the first half of this article, I showed you how we are facing a credit crunch and a consumer crunch and how these crunches bring us financial difficulties.

In this, the second half of the article, I show you how you can take a positive attitude to the credit crunch.

It's happened before

When taking a positive attitude, the first thing to help you is to remember that all this economic turmoil has happened before.

It's not the first time that there have been upheavals in the economy and it won't be the last time.

Recessions come and go, and the stock market goes up and down.

There have been stock market crashes as recently as 2000-2002. And who can forget Back Monday in October 1987 when share prices on the American stock market lost a quarter of their value in just a few hours. Then there was the crash in October 97 followed by a few years later by the dotcom boom and bust of the dotcom era.

We all fear recessions, but we seem to have them every couple of years.

The important thing to remember though is that the stock market eventually recovers and the recession passes, and life goes on.

The world will not end because we are being affected by a credit crunch, and a consumer crunch. It won't be pleasant, you may have to tighten your belts, forgo a few things you would have otherwise have bought yourself, you may even have to take a second job, but you'll get through it into the better times ahead. You'll especially get though I if you think positively.

Positive thinking

The second thing to do to help reduce your fear of the credit crunch is to - think positively.

Easier said than done, you may think.

You'd be right. It's not easy to stay positive when everyone around is starting to panic. It's not easy but you can do it.

Whenever I begin to worry I just ask myself the following questions:

1) What is good about my situation? 2) How would I have my situation if I could have it anyway I want it? 3) What do I have to START doing right now to get this? 4) What do I have to STOP doing right now to get this? 5) How can I enjoy the process of getting this?

I guarantee that if you use these questions every time you start to worry about the credit crunch, you'll soon start to feel your worry melting away to be replaced by a sense of calm, and confidence that you can handle it.

Long term plan for your life

My third tip to reduce your fear about the credit crunch is this - have a long term plan for your life.

The average UK person lives to the age of 80, the world age record is just over 120 years.

I would recommend you come up with a plan of what you want out of life between now and until you are sometime between that age of 80 and 120.

How does this help.

This helps with the credit crunch by putting it into perspective. Instead of it being an all encompassing life ending disaster, it becomes just one of life's downs. You know it will eventually pass, and there will be good times ahead again.

If you've written out a long term plan for your life your are more likely to write a plan on how you want to negotiate your way through the troubled times ahead.

So there you have it.

Don't panic about the credit crunch, remember that:

• it's happened before (and will happen again),

• use the questions I gave you, and

• develop a long term plan.

Thank for reading.

Damian.