Is the credit crunch true?

[Kazz]

Come on is this credit crunch too, has anyone seen todays papers....

"Debt crisis for professionals" middle Britain hit by the credit crunch.

House sales to drop by up to 40pc....

More repossesions already this year May than the whole of last year.

So what does anyone think is there really a credit crunch?

[yola]

In my opinion there is a 'wobble' which is being dangerously talked up by the media. They really need to put a lid on all these headlines as real damage can be done if they continue.

It's good that it's happened to restore a bit of sense into an economy that was in danger of overheating as it's made people think twice about frivolous spending.

[Kazz]

Thats prety much my take on it Yola, but listening to people in the staff room at work you'd think it was the end of the World....I said to one of them "are you thinking of selling then?" she answered "No we've lived there 18 years we love it" So I enquired why she was so worried by the prices, when the house is now I would be 98% certain worth more than it was 18 years ago....and if she is not selling she's not seeing the money anyhow....and one of the lads was complaining he couldn't get a credit card with a limit greater than £1,500 I said "But you work 18 hours partime....why would you need more than that you're at college?"

Seems to me people are worried when there is no reason to be and if anything the so called tightening of credit limits is a good thing why loan more money to people than they can comfortably repay??

[EmmaG]

I think for some professionals who have perhaps maxed out on lending will find it very difficult over the next year or so. Unlikely to be able to remortgage or borrow more money.

We are lucky that we have a very small mortgage (and loads of equity in our property) and have very little debt.

[Kazz]

Think that may be another thing though Emma people seem to max out on credit then remortgage to get back on even keel so to speak are now unable to do that....catch 22.

[charliebubs]

I think there is definitely a crisis of sorts, but I do agree that the press are scaremongering.

I have certainly seen a lot of redundancies (sp!) in my area of work - both in residential and commercial property law - as there just isn't the work at the moment. The market has dried up and there are even estate agencies closing in my area.

Personally, I have also felt the pinch as well. I only bought this house last year, as you know, and I live on my own. With the cost of all utilities rising and my now large mortgage I have been left with a tight monthly budget. I'm just relieved that I have a lodger at the moment - as her rent really helps me out.

[EmmaG]

certainly is Kazz. I don't blame the banks/lenders being more carefull who they lend to, it is about time! but perhaps a bit too late for some people ??

[Kazz]

I think thats it..Emma its a terrible shame the amount of people who will suffer due to this "crisis" however...but agree also with you Charlie but its always tight when
you've brought a new house isn't it, and lots of people are finding it slightly tighter than they may have before.

[charliebubs]

Yeah, I guess it is always tight - maybe it just seems worse because of all the hype!

[angieh]

I am more worried personally about the rising cost of food, not only for myself but for all. With the cost of fuel sky-rocketing, and some basic foodstuffs worldwide such as wheat and rice getting in shorter supply due to the increase in bio fuel production, it won't be long before food not only becomes very expensive but may also become scarce. If something is not done to redress the balances, then that's when things become dangerous.

Sorry, doom and gloom all round.