What is the Credit Crunch?

The Credit Crunch can be simply defined with a variety of phrases such as: A period when there is a sharp reduction in the availablity of finance from banks and other financial institutions.

The above is a simple and effective definition of a Credit Crunch; however it does not really explain what it means to the everyday person in the street and more over it does not explain why we have a Credit Crunch at all. For us the Credit Crunch is very simple.

All of our major banking and financial institutions are currently experiencing a shortage of cash, quite simply they do not have the funds to lend to their customers and therefore we do not have the ability to borrow any cash, this in turn means that we as a nation have far less cash to spend which means that business across the UK are selling far less than they were 12 months ago.

This site is designed to offer free advice to those who are struggling with the effects of the credit crunch.