The credit crunch is the perfect time to get your debts in order. As money gets harder to part with, it is important that you are not spending money when you don’t have to.

Start with your insurance premiums, as research by says that the average person pays over £1,500 a year but do not understand what they are paying for or how well they are covered.

Head of finance at the site, David Kuo, said: “The key to buying insurance is only to insure against risk that you cannot afford to bear. So, if you buy insurance you don’t need then you are wasting money. But if you don’t buy insurance that you do need, then eventually your decision will come back to haunt you.”

More than a quarter of those who look into buying insurance through the website do so to reduce their spending and take tighter control over their debt management.