MoneyMatters101.com Home
Credit Information

Ask The Counselor
Be Persistent
Building Credit
Buying A Home
Consumer Facts
Credit Tricks
Credit Help
Credit Report
Credit Score
Credit Secrets
Damaged Credit
Deal with Creditors
Debt Collectors
Establishing Credit
FICO Score
First Credit Card
How Credit Impacts
How Credit Is Scored
Improve Your Credit
Late Payments
Low Interest
Managing Credit
Powerful Strategies
Prevent ID Theft
Professional Help
Read Credit Report
Rebuild Credit
Reduce Credit Debt
Secured Credit Cards
Store Credit Cards
Student Credit Cards
The Credit Crunch
Types Of Cards
Unsecured Cards
Visa Credit
What Credit Means
Who Has Access
Your Credit


Email Us

Credit Cards
Interest Rates
Subprime Loans

Student Debt




The Ongoing Credit Crunch
by John M. Roberts

The current, ongoing, credit crunch affects everyone, regardless to whether you are rich, poor, middle class, young, old, whether you have a job or are unemployed, students, children, and those who are retired or retiring soon. No one is immune.

The unwillingness of banks and other lenders and credit providers to loan money puts a stranglehold on the way we all live because everybody's lifestyle hinges around credit in one way or another and when lending gets tight, we all feel the crunch.

When the economy goes into a serious slump, banks have to readjust their lending practices, find ways to loan money in a smarter and more desirable fashion, and make credit available at sensible rates. It may take a while before banks and other lending institutions get themselves together, but they will and eventually the economy will start looking better.

Until credit is loosened, though, we all suffer, not just in this country, but all around the world. Every household is touched and the longer the credit crunch lasts, the harder it gets to make ends meet. Tight credit also has a negative affect on the psyches of investors and anyone who depend on credit to operate their business.

Right now, things are tough. That is obvious. The worldwide economy is weak and stagnant but it won't stay that way forever. Politicians and those in charge of monetary policies are hard at work trying to get things moving again. It will eventually happen but it's going to take more time and some additional belt tightening.

  • For many people who are struggling and trying to make ends meet, time is not a luxury because what they are going through right now can't wait. They are saddled with bad debt, foreclosure, bankruptcy, unemployment, the threat of layoffs, and the stress due to it all is in present real time.

It may not appear that bad to those who haven't lost their jobs, their homes, can still pay their bills on time, and are not going through foreclosure or bankruptcy, but the current ongoing credit crunch is real and it doesn't matter who you are. It may not affect you as badly as it does others right now, but tomorrow may be a different story.

All you have to do is listen to the news and you can see that no one is safe. Businesses are hurting and the hurt is trickling down to the workers, and then on down to the workers' families.

Many of those who have always had good credit are finding themselves unable to get home loans, credit cards, or other big ticket items because many banks, credit card companies, and other sources of loans and credit have tightened their lending requirements.

Tight credit during a period of recession makes things a lot tougher for businesses that depend on the spending habits of people. When people don't spend, businesses don't make the money to buy or produce more goods to sell. Then workers start being laid off, many losing health and medical benefits, and companies go into bankruptcy or out of business. It turns into a vicious cycle and in the end, everyone suffers.


Book of the Month

Advertise on MoneyMatters101.com



Accessibility Policy| Terms Of Use| Privacy Policy| Advertise with Us| Contact Us

Use of this web site constitutes acceptance of the Terms of Use.

We are looking to create more mutually beneficial partnerships. If you are interested in partnering with MoneyMatters101.com, send us your proposal.


Link to MoneyMatters101.com