What exactly is the credit crunch?
Sep 21st, 2008 by Jamie Bradley
Coming to terms with the complexities of the country’s current cash crisis can be an arduous and financially damaging experience for the most of us living in the ‘real world’. So what exactly is this phenomenon also referred to as the credit crunch?
To contextualise it in its simplest format would be to point to the gradual increase in
the cost of living over the past few months. How that has come about revolves around the sudden decline in money available to banks, henceforth reducing their ability to distribute credit to customers.
This in turn ensures that it is more difficult to obtain loans, meaning that banks are able to dictate the rate of loans, in the knowledge that people are willing to make that sacrifice in order to secure temporary financial security.
It may have become apparent to you homeowners that the cost of gas and electricity has somewhat dented your monthly wage packet, with prices sky rocketing by as much as 15% in a matter of months. This in turn has had a domino effect on other industries which rely upon economic gas and electricity supply to be able to generate substantial profits.
Supermarkets are one form of outlet affected by such price hikes and therefore must up their product prices in order to ensure that their profits are not hindered by these extra outgoings, which consequently compounds this detrimental impact that the credit crunch is having on our pockets.
In order to bypass the crunch, we have come up with some tips and advice to help you save all the money you can, leaving you with plenty of room to do exactly what the British government are telling people to do; spend,
spend, spend.
Click here for tips and advice >>>
By Jamie Bradley
