The Bank’s final quarter credit conditions survey notes concern among lenders that the deepening crisis among banks in the eurozone could lead to a credit crunch and make loans less available.

The European Central Bank has had to intervene in the euro money markets this week to shore up the banks which have become fearful of lending to each other.

Fears about a double dip recession have caused concern amongst many UK borrowers but a better-than-expected GDP, together with improving manufacturing and construction surveys, has reduced the likelihood that Britain headed into a double dip recession in the final quarter of 2011.

The problem is clear, the Government needs to add more competition to the market place. It needs to make it easier for companies and individuals to start day care centres and possibly change the perception of the traditional formula. Local councils need to be softer on planning applications and maybe incentives offered to developers who provide land or space for these projects.
However, these changes are not going to happen over night and therefore the immediate outlook for working parents is bleak.
Childcare is not a luxury spend and the providers know it. So until a solution can be found to the problems of cost, we all must look at what savings we can make through the month. What many people don’t realise is that the biggest saving can come from your Creditors. If you have unsecured loans, credit cards or overdrafts, these ‘secondary’ debt can be treated as that.
How can I do that?
You can contact all your creditors directly and they will ask you to fill out an income and expenditure statement. From this you can work out what your new lower monthly payments will be. Alternatively, If you want us to carry out a free financial health-check then contact one of our trained advisors now on 01344 863 630.

Todays economic problems mean that cant happen. No more easy credit means the UK consumer can not bail out the struggling economy by spending their way out of economic problems. I survey out today (11th Aug 2011) shows more than 60% of shoppers have switched to cheaper brands, while 32% claim that they are worrying about surging prices leaving them with no disposable income according to the British Retail Consortium’s study.

BRC Director General, Stephen Robertson ‘weakness in the economy and rising utility and food and fuel bills top consumers concerns for the next 6 months’ he also warns that even after paying off essentials, households that do have spare cash are choosing to pay off debts rather than spend on the high street’
He also admitted that the difficult economic circumstances are forcing consumers to become more savvy.

The problem here is that this is a negative spiral which. Consumers spend less, prices drop and we are in a deflationary spiral.

As well as consumers watching what they spend, they are having to manage their finances better. There are so many more options available to consumers that their creditors would have them know.
Being well informed is really the key to making it through this difficult economic time. This is where our consumer credit councillors can really come into their own. If you are in any doubt about how to manage your finances through these tough economic circumstances, then please contact our trained advisors and find what options are available to you and how best to save money.

Personal debt levels remain high with UK consumers. According to
Credit Action the Average household debt in the UK is £8,076 Interest
rates on credit cards and loans are at a record high but yet the base rate remains at a record low. Credit card interest rates can vary from 15% to 30% that’s means UK households are paying on average £1200
in interest alone per annum! This is highly profitable for the
creditors and it is not uncommon for the high street banks to make

Billion pound profits.

The UK has seen many demonstrations in the last 18 months, unions taking to the streets and showing their anger towards their standard of living being squeezed. The Chartered Institute of Personnel and Development has recently found that only 1 in 4 workers has had an
increase and that 1 in 20 has had an actual pay cut. Inflation it at a recent high and downwards pressure on wages and jobs is starting to bite. The High Street which traditionally saves the UK economy has been hit hard and many household names are closing their doors.

Squeezed England is the phrase that the newspapers have coined for this particular difficult economic period. The North East was names the ‘Pay-freeze capital’ of Britain with 75% of workers reporting no salary increase this year. With inflation at 4.5% that’s a drop in their standard of living.

We are in such a difficult place. Is there any light at the end of all this? Where are people going to find the extra money to live from?

Simple – the answer is that it is your secondary borrowing or loans, credit cards and overdrafts that are the ones which are going to have to take up the shortfall. If you were paying £500 per month for debt, this is going to have to be £200 or whatever you can afford. The Banks and Creditors have leant large sums of money without regard to
affordability and now they are going to have to face up to this profiteering.

Settle-My-Debt will deal with all your unsecured debt can help reprioritise outgoings and make life far for manageable. It is the only answer other then winning the lottery. There is a huge lack of knowledge about what is possible in the world of unsecured leading or secondary debt.