The news is always full of stories about the credit crunch. As it unfolds, the credit crunch will directly affect everyone is some shape or form.
So…….what exactly is the credit crunch, and what does it mean for you?
The main cause is a lack of trust between UK banks. They are unsure about the exposure levels to the US sub prime mortgages that used to be accepted as collateral to support loans between banks.
These loans are used to finance the credit previously enjoyed by individuals. When this dries up, it can cause individuals to cut down on their spending. This in turn creates redundancies and possibly a recession.
Personal debt levels will ultimately become a massive burden once the 0% credit cards disappear. This coupled with the fall in house prices, will put families under even more financial hardship.
This situation is likely to get worse before it gets better. The consequences of the credit crunch can be extremely stressful for many people, especially those with high levels of personal debt.
REVIVAL is a local firm that provides free, independent, no obligation professional debt service. Sarah or Simon can discuss your debt problems with you and suggest possible solutions.
If you are stressed out by the level of your debt, give us a call on freephone 0800 011 3606, or request a call back on revivalforyou.co.uk.