Goodbye Terrorism, Hello Credit Crunch
By Drew Johnson on Wednesday, August 29th, 2007 :: 5:07 pmCategory: Financial News
Terrorism has been dethroned. A widely published survey of 258 top economists in America has revealed the newly crowned biggest threat to the American economy: credit.
The survey, compiled by the National Association for Business Economics, says that worry about the credit crunch and mortgage loan defaults is the new juggernaut crashing through the American financial landscape.
House prices are falling for the first time in decades. Mortgage lenders are wary of giving out new home loans. Banks and businesses are having a hard time acquiring the necessary credit to finance big mergers. All this may add up to a recession, the first since 2001.
This also means that homeowners, who for years have been able to borrow against their home equity for debt consolidation, will find it much harder to secure cheap loans to pay off their high interest credit card debt.
One can only imagine how the credit crunch will continue to influence the debt relief and debt consolidation industries. Brad McDonnell, a financial writer working in Dallas, speculates that debt may actually drop:
“With creditors more wary of offering credit and loans, people are actually going to find it harder to get into debt,” McDonnell said.
So there is really no time like the present for those with huge credit card debt burdens to start reducing their balances. Working with a credit counselor or debt settlement company to work with creditors is a great way to learn how to reduce balances and get back on firm financial footing.
While the rest of the country is struggling with its financial ills, debtors must act to preserve their economic safety.
You can settle your debts today. Drew Johnson is an expert in the various methods of debt reduction and has successfully reduced his own debt. He has written about various debt relief topics, including bad credit help . Credit Solutions provides an alternative to consolidating your debt.
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