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The Credit Crunch is
due to a sudden change in the global economy. This causes a huge deficit
in the availability of credit from banks and other lenders in order to
reduce their own risks.
These lenders often increase the cost of borrowing to their customers by
raising their interest rates, thus making it harder for people to afford
repayments.
When this happens, the growth of debt is forced to slow down, money is
tied up repaying the debt and the vast majority of people have fewer
liquid assets.
How
did it all start?
The
global credit crunch we are now experiencing was caused when people with
poor credit ratings were offered mortgages they could never hope to
repay.
In
the USA borrowers were unable to meet higher repayments to their
mortgages due to the rising interest rates, particularly people with
sub-prime mortgages.
As a
consequence, more mortgages were foreclosed in America (more properties
were repossessed and sold on to recover debts), and the previously
buoyant housing market collapsed.
These were called
sub-prime losses and started as early as 2006 and continued to worsen
throughout 2007 and into 2008.
Debts are
often bundled together and sold to other financial companies around the
world. These companies are happy to buy debt because of the high level
of interest which can be realized on these loans.
This creates a source of money which
can be re-invested or lent to people or other companies.
With very little
debt being paid off, financial institutions like mortgage companies and
banks have been unwilling to take on more debt and so have little or no
money to lend.
These consequences have reverberated around the world. Some companies,
such as many Banks, world wide, have been far too dependant on this source of
finance and have suffered hugely as a result.
There is
considerable debate at the moment as to who is responsible for the
financial meltdown. The consumers for putting too much on credit and
over spending or the banks for their irresponsible and high risk
lending?
How
does it affect me?
To make sure
they are no longer at risk, finance companies have made it harder for
you to obtain loans, mortgages, credit & store cards. They have
tightened their lending criteria, increased interest rates and are
charging higher fees.
This affects
you, the consumer, because it means you have fewer ways to get out of
debt: your spending may have to be cut, and your repayments are likely
to increase substantially.
The credit
crunch also affects those looking for employment, as companies are
reluctant to take on additional staff.
What
can I do?
If you are
wanting to take out a loan, get a mortgage or re-mortgage now is the
time to check your credit file as most lenders are only willing to lend
to people they deem to be good or very slight financial risks .
The housing
market is the main market which the credit crunch has affected. It is
causing huge problems and will probably continue to do so for some time
yet.
If you have
any spare cash now is the time to carry out your home improvements and
be ready for when the market picks up.
If you are
looking to purchase a property, consider buying a repossessed house from
an auction - there are some bargains are to be had.
If
you are coming out of a fixed rate mortgage try to get a new one
with the lowest rate possible.
If, as a
last resort, you are looking to sell your property to release money to
pay off debt, then moving to a cheaper, smaller property could possibly
solve the problem.
Many people
are renting property until the economy starts to recover which may be a
good idea as it gives you time to consolidate.
As an alternative
you can always earn money on the Internet! Have a look at our Internet
Marketing Pages and see what's available.
Is The Credit
Crunch Real?
Yes, the Credit Crunch is real and affects all aspects of
financial transactions throughout all sectors of the financial world.
Nobody is
absolutely sure when things will start getting back to `normal`.
It depends on which Newspaper you read or which Pundit you trust
and believe.
One thing you
cannot do is ignore it and think it will go away. It won't.
This is why you
must take action
now.
There Are Ways To Overcome Your Problems.
Many people are suddenly faced with
financial problems they never expected. In many cases, this is through
no fault of their own.
In recent time several sets of circumstances have come
together to cause this worrying situation.
There is no need to
go into the details of how and why this has happened - it would take too
long.
But it has
resulted in many people being hard pressed to meet their financial
obligations that have arisen due to the Credit Crunch.
This
inevitably leads to problems and situations which are extremely
worrying and depressing. It can also lead to family problems,
sometimes with disastrous results.
Health begins to suffer, sleeplessness and then lack of concentration
often occur. Panic measures are introduced and plans are altered,
creating widespread disappointment.
Such anxieties are
difficult to contend with, but need to be confronted as quickly as
possible. It is no good trying to ignore the problem or `closing your
eyes` to it. It won’t go away. So, what can be done?
Here are some of
the actions you can take.
* Ignore the problem and hope it will disappear.
It won’t.
*
Try and borrow some money from relatives or friends.
Not a good idea.
* Ask your
Bank Manager for help.
Not
his/her role in life these days.
* Ask
your accountant for solutions.
Expensive and will
give information you already have.
* Ask friends for advice.
They are probably less qualified than you
are.
*
Try and work out your own solution.
Possible, but
will continue to cause stress.
*
Look for expert and professional advice.
Take care to find the right people.
Take experienced and Professional advice and use a
well established and reputable company. We only deal with the best.
We show you how to get help and avoid all
the stress, worry and anxiety of financial problems. Click this link:-Debt
Relief Advice. Please
put Debt Relief in the Subject Line
Owing money and being unable to repay it
when due is the first sign of financial trouble.
This is when action should be taken immediately to discover the cause
and steps taken to rectify the situation.
Not accepting the facts is one of the reasons for serious financial
problems to develop.
As soon as it becomes obvious you can no longer keep up mortgage
repayments or any other commitments, that is the moment when you need to
seriously consider how to tackle the problem.
More often than not you’ll find it cannot be resolved by trying to work
your way through it on your own. This is the time to get help
As already mentioned, the best way is
to seek trustworthy and comprehensive advice. It is essential to
select the right people who have specialist knowledge.
There are many
ways debt repayment can be eased with the use of expert advice.
Not only that, but
a reputable company can do all the negotiations and make all the
arrangements for you. And these services are not prohibitively
expensive.
To be free of all the stress and strain, worry and anxiety is worth
every penny to gain peace of mind once again.
You’ll wonder why you didn’t seek such help earlier.
That is why we offer Free, Professional Quality Advice on our websites.
Do
You Have Mortgage Problems?
Figures published recently
show that more than 130,000 people with mortgages were in arrears by at
least 3 months with their repayments.
Forecasts
suggest this situation is getting considerably worse. Many of these people
will struggle to catch up on their repayments unless they take drastic
action quickly.
Re-mortgaging may be a possible solution but not at the same favourable
rates of the original mortgage.
This is
largely due to the “Credit Crunch” which has thrown the whole financial
market into chaos.
It is unlikely
lenders will offer the favourable rates which were available and popular
until some months ago.
This
applies particularly to people who have fixed rate mortgages, due to run
out, which means people who have to re-mortgage will find it impossible
to do so at the previous rate.
Catching up on delayed repayments is not easy, particularly when the
lender starts exerting pressure on its borrowers.
Today’s cash strapped markets offer few options to deal with debt today.
Whatever you do,
never
use your Credit Cards
to finance your mortgage repayments or other household expenses.
More and more people are doing this, probably in panic, but it is not a
solution and only adds to the problem.
Look at the facts! Your mortgage carries a much lower interest rate than
other forms of credit.
If you borrow money from a Credit Card company you will pay much higher
interest rates as well as paying fees and penalties.
The average A.P.R for credit card debt is about 16%, considerably higher
than your mortgage interest rate.
If you withdraw cash using your credit card you will pay an increased
A.P.R of between 21% and 28%. You will also be charged a cash handling
fee of 2.5% to 3% for each transaction.
As you can see, using Credit Cards to meet mortgage repayments is
extremely expensive.
The money still has to be paid back as well as the mortgage repayments.
You can’t pay one debt and ignore the other.
The only effective way to overcome the problem is to take long term
positive action and deal with the situation realistically.
Cutting back on household expenses will help, certainly in the
short term, but it won’t provide a permanent solution.
Fortunately there are other methods. It is essential that once money
problems arise, or seem likely to, that is the moment you must take
action.
You must first contact your lender, explain the situation and see if
they are prepared to perhaps lengthen the term of your mortgage. They
have many ways of helping customers and frequently do.
They don’t want to repossess your home and would rather you keep it and
pay off the mortgage at some time in the future.
As mentioned before, it is still possible to get your bank to help,
although in today’s financial climate, this is not as easy as it was.
The bank’s decision will obviously involve your banking history but
personal loans are still being offered. It is worth a try if you feel it
will help.
A practical and efficient way to
relieve the pressure is to speak to a Financial expert. They have the
knowledge, contacts and methods of helping people who have financial
problems.
  
To
receive details of how to get help and avoid all the stress, worry and
anxiety of financial problems click this link:-
Free Debt
Relief Advice. Please
put Debt Relief in the Subject Line.
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combined with a
friendly attitude
of all the staff we
spoke to,
and would like to
thank everyone at
Harrington Brooks
very much.”
Mr and Mrs B,
Liverpool
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“We were
really pleased with the
efficient
way that
Harrington Brooks handled our
enquiry
and by the
speed in which our mortgage was
finalised.”
Mr. and Mrs. S, Birmingham
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“I found
the staff at Harrington Brooks
were all
very
polite, helpful and
understanding.
I couldn’t
fault the level of service we
received
from start
to finish.”
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To receive details of help and
avoid the worry and anxiety of financial problems, click this
link:
Debt
Relief Advice. Please
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