How people should manage themselves in credit crunch crisis?

Proverbs says the debtor is slave to the creditor, this means that to achieve financial freedom, one must be free from debt. I know this is a really difficult one to balance especially if you want to buy property etc., and to be sure, "But given that the financial crisis is really the result of people going into debt to buy things they can't afford (ie. bad housing mortgages), I don't really have a lot of good things to say about debt. Ultimately I think it comes down to individual wisdom & common sense about how much "enslaved" you want to be. In other words, debt is bad, but the level of "badness" is within your control. I think a good rule of thumb is whether you have enough assets to redeem your liabilities and still come out in the black. If so, then you'd be in a better position to manage debt. But the ideal situation is still to be debt-free.

The money loop, economics, finances, and well-being indicators dances up and down on the head of a pin, nobody knowing exactly how to deal with it. I could say we need to avoid the temptation to be timid in spending; that such moves, demanded by conservatives, people find themselves in dire situations, because they have lost their job or for some other reason, it is often difficult to know what to do or who to turn too. I would always suggest that if anyone find themselves in this predicament then they ought to seek legal advice whether that be from a proper debt company or the citizens advice bureau.