The worldwide credit crunch, the financial fiasco, the economic slowdown, its all going pear shaped...

...call it what you will, there is no avoiding the fact that times are tough for many of us right now.

In the last few weeks, the Financial Services Authority (FSA) has warned homeowners could be at risk from the economic slowdown.

So, if you are one a homeowner, will you be one of those affected and if so, what can you do about it?

1. What's the problem everyone is talking about?

More than one million homeowners could be in for a financial shock as a result of the economic slowdown, the FSA has warned, and some could even lose their homes.

With both mortgage and unsecured debt in the UK now at record levels (total UK personal debt at the end of December 2007 stood at £1,409billion) the FSA believes that some overstretched borrowers or people with larger mortgages may be unprepared for the worsening credit conditions.

The FSA has identified three "high-risk" groups as the most vulnerable:

- Those who have borrowed 3.5 times their income or more

- Homeowners who bought a property with a deposit of less than 10%

- Borrowers with repayment terms of more than 25 years.

Many mortgage lenders are also having problems funding their own products, and are becoming tougher as a result. They are now looking for higher deposits and offering many of you less flexible terms, which means some of you (especially adverse credit borrowers), could have problems remortgaging.

2. How many borrowers are at risk?

Over a third (nearly 2 million) of all mortgages sold between April 2005 and September 2007 fall into one of the three high-risk categories we mentioned above.

However, the FSA is worried that those of you with two or more of the riskier characteristics are most at risk of defaulting and an estimated 150,000 of you have all three.

Large numbers of mortgage and remortgage applicants are also struggling to find a lender right now. If you are seeking to remortgage, you may not find a new lender and you may be forced onto your existing lender's higher standard variable rate (SVR) repayments after your deal ends.

3. Which mortgage borrowers are the most at risk?

Those most prone to risk are those of you with a higher than average debt level which means you could fall foul of lenders' tougher attitude to the borrowers they are willing to take on.

Fortunately, repossessions are still at low levels, but are expected to rise this year as relatively new homeowners with high levels of debt could struggle to keep up their repayments during 2008.

The problems are unlikely to affect the majority of the estimated 1.4 million borrowers reaching the end of fixed rate deals this year.

The likelihood of further rate cuts (hopefully this month) may even offer the cheerful prospect of better mortgage rates!

4. Will it be difficult to get a new mortgage deal?

Unsurprisingly, those of you with credit problems will have a tougher time than most getting a new mortgage. This is due to the specialist lending market contracting and also the fact that those adverse credit mortgages on offer have far higher rates and less flexible criteria then those that were available before the credit crunch.

But for all borrowers, the mortgage market will be less competitive this year. Some lenders may raise mortgage interest rates even if the Bank of England cuts its base rate, to control how much they are lending and to make their loans less attractive to certain borrowers.

If you are after a new mortgage deal, you should get some impartial advice on comparing mortgages.

5. If I begin to struggle, how can I protect myself?

If you are worried you could consider renting out a spare room in your property as you are allowed around £4,200 tax free under the Governments rent a room scheme.

Or, if time allows, it's worth getting a second job to boost your earning power. You might also consider taking out mortgage payment protection insurance (PPI), which can sometimes cover the repayments on your home if you lose your job or are unable to work.

But shop around and seek advice from an independent financial adviser before buying anything, because coverage levels and criteria differ between products and it is important to get the coverage you need.

Are you wasting money on your insurance?

Have you been mis-sold payment protection insurance? Claim it back!

6. What can I do if I am already having repayment problems?

Firstly, don't panic!

Secondly, you need to take a long hard look at your finances; you should write down your income and outgoings each month and try to plan ahead by putting together a budget.

Separate your essential expenses from your non-essential and always prioritise your mortgage payments; don't ever be tempted to take on more debt to solve your repayment problems (like a consolidation loan or yet another credit card!)

If you feel you are at risk of falling behind with your mortgage payments, or have already done so, you must contact your lender immediately and discuss your options. It is in their interest to negotiate, and you may be allowed to take a payment holiday or make lower interest-only repayments for six months, although you will have to catch up on any missed repayments as soon as you can.

If the credit crunch is causing you some concern, and you think you need some help, then you should talk to independent debt advisers like Citizen's Advice or Credit Action who offer impartial and ethical advice about all things debt related.

The Consumer Credit Counselling Service (CCCS) is free and impartial and their helpline is open from 8am to 8pm, Monday to Friday, on 0800 138 1111.

If you are already in debt and are having problems keeping up your paymenmts, then speak to a debt specialist who can help.

So, even though there are some tough times ahead for some of you homeowners, there are things you can do to make it easier for yourself and there is help available, so you shouldn't stress too much!

How you can ride out the credit crunch

Avoid mortgage misery in 2008