Cheap credit has been available for so many years in the UK that many people have now accepted it as the norm. However, recent events in the global economy could prompt the end of low-cost lending, and bring with it a culture shock for many.

Traditionally, economies have undergone cycles of 'boom and bust', but the UK's economy has appeared to have bucked that trend for a significant number of years; as a result it has been remarkably recession-free. But, if the doom-mongers are right the recent global credit crunch will signal the onset of a recession that could bring with it high-priced, double-digit interest rates such as those witnessed in the late 1980s.

Because credit has been cheap to obtain since the mid-1990s many people have developed a 'buy now, pay later' culture, and as a result have built up significant debt balances. They are now finding to their cost that cautious banks and building societies are becoming very selective, lending only to those who have the best credit records and low levels of debt.

If this temporary blip turns into a full blown recession it is best to be prepared for the worst. Most personal financial experts would advocate cutting down on spending - even if you are not in debt. However, many economists would argue that by cutting back on expenditure a recession would become a self-fulfilling prophecy. It would arise because many businesses, in the light of reduced income, would struggle, forcing many to lay off staff and some to ultimately cease trading.

However, putting aside the doomsday scenario, if you are in debt it would make sense for you to stop spending on non-essentials immediately. For example, there's no need to add an expensive holiday to your debt mountain but instead divert any extra funds towards paying off existing debt.

If you have a reasonable car in good working order, don't opt for a potentially costly upgrade for a year or so. However, if your existing vehicle is on its last legs make sure you comprehensively do your research and find the best deal on car credit before opting for a replacement.

However, whatever your situation the most important thing to bear in mind is not to panic. You cannot influence the global financial markets, but you can make sure that your finances are in the best possible shape. If you are struggling, seek professional advice as soon as possible and do not wait until your creditors are knocking on the door.

The recession may or may not happen, but it is best to ensure that you are in the best financial shape for whatever lies ahead.