The Credit Crunch – How will it effect you?

September 18, 2007 on 9:42 am | In Debt Management

How do problems in global money markets effect me and you? Well, I have a mortgage and it is likely that you do too. You have to ask yourself where your mortgage company gets money to lend to you. Simplistically, from global money markets; one institution to another.

Also ask yourself, what if the rates on which the banks lend goes up? Well you guessed it, they pass the increase onto their clients ….. our mortgage payments go up.

The recent problems in global money markets have been termed the ‘Credit Crunch’ or ‘Credit Crisis’ and we have seen, in the last week or so, lenders putting their rates up. Abbey is the most notable, with Halifax and Standard Life looking set to follow.

If high street lenders are feeling the pinch, sub prime or secondary lenders are likely to be in turmoil ….. you need to work out the cost to you.

 

Getting a loan to live?

September 13, 2007 on 2:19 pm | In Loans

Consumers are running into trouble as a combination of rising costs and tighter lending criteria squeeze their spending powers.

Provident Financial has reported that more and more people are borrowing money from them and it blames food and fuel prices. It is worrying that people are borrowing money to live and not just to buy luxury items.

Clearly something has to give. Mainstream lenders are seeing bad debt soar and they are no longer willing to give money to anyone. In fact lenders such as Provident are not a soft touch and in the past six months it has rejected 7 in 10 credit card applications.

I am concerned about those people who make applications to look for credit to live. If that is you, you need debt advice.

 

Christmas is coming

September 12, 2007 on 3:31 pm | In Debt Management

I know it’s early but some people are already buying presents for Christmas. ‘How organised’, you may say and given that we are already thinking about the run up to Christmas it may well be a good sign for the retailers. However I think retailers maybe in for a grim Christmas.

Consumers are feeling the squeeze as the Citizens Advice Bureau (CAB) reports handling a record 6,600 debt enquiries a day. If you need to enquire about debt at the CAB you need financial help … and with Christmas round the corner……

 

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