Credit Crunch Myths

credit crunch myths

Credit Crunch Myth 1 – Your money isn’t safe anywhere

Confidence in what most people thought were rock solid bank institutions has been shaken at their roots by the credit crunch. However the banks

The answer is to spread your money, and in so doing so, your risk too. Have some cash in an instant access account, put some into a higher-paying fixed-interest account if you can set the money aside for a year or two and then keep an eye on the markets so you’re poised and ready to take decisive action when the flight back to equities starts.

Credit Crunch Myth 2 – Borrowing money is impossible

Lenders have toughened up their lending criteria and pulled many of the deals they used to offer, so it’s true to say that there are only a fraction of deals out there now. But it’s not true to say borrowing has dried up completely. Banks need to lend; it’s part of what they do.

Credit Crunch Myth 3 – You can’t get a credit card

Although many lenders have tighten their requirements, with 100’s of credit card offers still on offer you just need to shop around and find one that suits your needs.

Credit Crunch Myth 4 – It not worth saving money in banks

With interest rates at record lows all over the world, saving accounts now offer little or no returns.  However you can search for certain high paying accounts which offer up to 4%.

Credit Crunch Myth 5 – It’s the worst economic situation this century

Remember America in the 30’s, unemployment was running at about 30%, the stock market index had dropped by 90% & millions of depositors lost their savings.

Credit Crunch Myth 6 – No one’s job is safe

While certain job sectors like the financial sector will be effected greatly by the credit crunch, many industries will be fine.

Credit Crunch Myth 7 – The government isn’t doing to help

Governments across the world are spending billions to overcome the credit crunch problem.