credit crunch

A credit crunch is a direct result of a recession in an economy. Due to the bleak finanacial state of a country, banks enforce a stricter lending policy making loans almost unattainable and the availability of credit scarce, which is deemed a "Credit Crunch" or "Credit Crisis."

By actioning a credit crunch, it is hoped that the economy can revive itself, but in order to do so many cuts have to be made that have an effect on everyone. Government spending is cut, jobs are lost due to wage cuts, job availability is decreased and taxes are raised in a bid to balance out the financial situation. You'll find how people are coping and useful advice about the credit crunch at Credit Crunch Blog and at The Credit Cruncher.

The crisis is often caused by careless lending on the country's behalf and over-spending which thus leads to debt, increased interest and the need to borrow amounts that cannot be paid back.

Once an economy has recovered however, the cycle can begin again and hopefully be avoided in the future.

You can read an article on how the credit crunch is effecting 2010 graduates at Blogcritics Magazine.

by Rebecca Fordham Are you a writer, passionate about this or any other topic? Join Blogcritics!

Original Technorati articles tagged “credit crunch”

• in Technorati Women
  Unemployment is the Biggest Global Fear
  Unemployment tops the list of major global concerns according to a new BBC World Service study.
  by cmimanagers / on Dec 12, 2011
• in Finance
  Portugal, Spain Worry Contagion from Ireland
  Ireland authorities deny that they need EU aid, but Portugal and Spain urge it to act fast to prevent contagion.
  by vijji / on Nov 16, 2010

Latest blogosphere posts tagged “credit crunch”

 

• What else could you buy with a bank chiefs bonus? What is Stephen Hester worth - visualised

  
  News: Datablog | guardian.co.uk — Authority: 103
  Nearly £1m in bonuses for the Royal Bank of Scotlands chief executive, Stephen Hester sounds like a lot of money, but what else could you get for it? This visualisation, by Guardian designer Kari-Ruth Pedersen, puts it all in perspective Simon Rogers Kari-Ruth Pedersen
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• It pays to have a variety of different credit cards and to get the best deal.

  
  Net Gossip & Opinions — Authority: 121
  If you are a smart cookie about it, credit cards could be the best method of making sure you save money when you borrow. I at the moment have seven cards at any one time and take care that I frequently choose the one with the most valuable arrangement on cashback and air miles. In addition I ensure I am up to date ...
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• The Dangers of Financial Illiteracy

  
  Rich Credit Debt Loan — Authority: 465
  Financial illiteracy is a growing problem throughout the world, and as the recent housing crisis has brought to light, it can have dangerous consequences. There are a few basic financial tips that everyone can use to increase their financial literacy the easy way, and many of these tips can help you save thousands of ...
  1 day ago

• Eurozone data raises fears of second credit crunch

  
  top99news - breaking news from the world top newspapers — Authority: 162
  http://www.guardian.co.uk Eurozone data raises fears of second credit crunch Analysts say ECB likely to cut interest rates after official data shows loans to eurozone firms fell sharply while the volume of cash grew at slower rateThe prospect of a second credit crunch in four years came closer on Friday ...
  1 day ago

• Eurozone data raises fears of second credit crunch

  
  The Guardian - guardian.co.uk — Authority: 962
  Analysts say ECB likely to cut interest rates after official data shows loans to eurozone firms fell sharply while the volume of cash grew at slower rate The prospect of a second credit crunch in four years came closer on Friday after official figures showed loans to firms in the eurozone fell sharply in December and ...
  1 day ago

• How much does it cost to raise a child?

  
  The Guardian - guardian.co.uk — Authority: 962
  Raising a child costs a grand total of £218,000 according to the latest estimates. We look at the data behind this figure • Get the data Theres plenty of data around on the cost of living generally , but not so much on the cost of specific things like raising a child. According to the latest figures (pdf) ...
  2 days ago

• Debt, what is it good for?

  
  The Share Centre Blog — Authority: 120
  And so the Bank of England tries to solve a crisis caused by too much debt by trying to make it easier to borrow. Germany sits on a debt mountain that would have been considered horrific a few years ago. But now it is being asked to dig deep, borrow more, and throw its money at fixing other countries’ debts. ...
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• Small business confidence nosedives in Q4 2011

  
  Freelance Advisor — Authority: 415
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  5 days ago

• Poundland is quids in after Christmas sales rise 25%

  
  The Guardian - guardian.co.uk — Authority: 962
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  1 week ago

• How the world economy can solve its credit crisis

  
  top99news - breaking news from the world top newspapers — Authority: 162
  http://www.guardian.co.uk How the world economy can solve its credit crisis By pumping billions into their economies with little effect central banks have become bridges to nowhere – and now they are at risk of toppling overMore than three years after the global financial crisis, the world still has a ...
  1 week ago

• How the world economy can solve its credit crisis

  
  The Guardian - guardian.co.uk — Authority: 962
  By pumping billions into their economies with little effect central banks have become bridges to nowhere – and now they are at risk of toppling over More than three years after the global financial crisis, the world still has a nasty plumbing problem. Credit pipes remain clogged, and only central banks are working ...
  1 week ago

• Colgate Coupon – Save Money With Colgate Coupons

  
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  Colgate Coupon – Save Money With Colgate Coupons Colgate has numerous different varieties of toothpaste specifically formulated to meet your oral requirements and personal flavour preference. ==> Get Your Free Colgate Coupons Here Toothpaste is one product that is used every day by people all over and ...
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• Managing Stocks in an Economic Crisis

  
  Rich Credit Debt Loan — Authority: 465
  2008 is showing all of the hallmarks of being a difficult year financially, and for this reason, having control over your cash flow is absolutely vital. Managing stocks in an economic crisis is one of the best possible defenses that you can take during the credit crunch. By monitoring the liquidity of your cash ...
  1 week ago

• Short selling sqeeze drags euro up

  
  Wise Money — Authority: 107
  The recent rally in the euro was very surprising given the lack of any positive or even specific euro related news over the past couple of days. Market sentiment about the single currency remains low (after a temporary blip last week) because a Greek default is looming ever larger and European policy makers are ...
  1 week ago

• Money, money, money!

  
  Welcome to my world JanMary — Authority: 120
  Like everyone else, I am really noticing the prices rising, particularily in the supermarkets.  The credit crunch is persisting, there is much less job security, pay freezes, and everyone is feeling the pinch. The cost of our weekly "big shop" just keeps increasing. In our family, we use credit cards for our ...
  1 week ago

• World Bank warns of global recession

  
  BNB Times | Latest Updates on Business, Entertainment, Technology, Lifestyle.. — Authority: 121
  This article titled “World Bank warns of global recession” was written by Larry Elliott, economics editor, for The Guardian on Wednesday 18th January 2012 02.02 UTC The World Bank has has warned that the crisis in the eurozone will lead to a sharp slowdown in growth in rich and poor countries this year and could ...
  1 week ago

• World Bank warns of global recession

  
  top99news - breaking news from the world top newspapers — Authority: 162
  http://www.guardian.co.uk World Bank warns of global recession Eurozone crisis, weak growth elsewhere and reduced ability of governments to respond may lead to rerun of 2008-09The World Bank has has warned that the crisis in the eurozone will lead to a sharp slowdown in growth in rich and poor countries ...
  1 week ago

• World Bank warns of global recession

  
  The Guardian - guardian.co.uk — Authority: 962
  Eurozone crisis, weak growth elsewhere and reduced ability of governments to respond may lead to rerun of 2008-09 The World Bank has has warned that the crisis in the eurozone will lead to a sharp slowdown in growth in rich and poor countries this year and could spiral into a rerun of the 2008-09 recession. In its ...
  1 week ago

• Creative HSBC ads vol.2

  
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• Jerry Yang resigns from Yahoo

  
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