The UK Housing market is not the only thing that has
suffered in today's economy. Both the UK and US's economies have
been poorly mismanaged, with unevenly distributed wealth causing millions of
individuals to fall deep into debt and, ultimately, not make their loan
payments resulting in billions of dollars in unpaid and defaulted
With less money to give out, banks and creditors are having
an increasingly difficult time lending money to needy borrowers - so much so
that many of them have simply stopped lending money at all. Those that are
still lending out money are doing so at substantial risk to the borrower,
with interest rates that have nearly doubled since before the credit crunch
What Is Being Done?
Despite its harmful effects on both the economy and people's
lives, very little is being done to fix the crisis. Politicians have mostly
been throwing around blame without turning any of their words into action.
Gordon Brown has even blamed food prices for the
credit crunch claiming that individuals have been overspending on food
rather than saving their money to pay back their creditors, but even these
unfounded claims have gone without action as people continue to lose their
homes to the credit crisis.
What Can You Do?
When the credit crunch is this bad, it is difficult for one
individual to fix the problem. For starters, however, you can make sure that
you always have the money to pay back your loans. The more people that are
able to pay back the money they owe, the more likely the credit crunch will
dissipate in the not too distance future.
In addition, try to save money and keep an eye out for low
rates. Getting sucked into taking a loan at a higher rate than you can
afford can only make the credit crunch worse. Taking out a loan
with an interest rate so high that you may struggle to pay it back is only
going to put lenders into greater debt resulting in a longer credit
Finally, pay attention to what politicians are doing
to fix the issue. Your involvement in politics and passion for fixing the
problem is the only thing that will ensure that the government is able to
step in and help fix the economy. Otherwise there will be nothing but
continued bickering without any changes being made.