It is unfortunately a fact of life that at times people do struggle to meet their financial commitments.
This fact of life has become relevant to more people than usual during this period of recession precipitated by the crisis in the banking industry.
The heart of the economic situation started in America due to the reckless lending of the banks and building societies granting loans and mortgages to those who would never be in the position to repay their debts.
The main fault with the lending criteria was that loans and mortgages both to the private and business sectors were granted based on pure self declarations of earnings.
These self declarations of income were exactly what the term suggests and that is the applicant for finance simply declared their own earnings on a bill head or similar without any back up proof of any kind.
The lenders started to struggle just as their customers did and the system became close to collapsing.
This crisis spread to the UK and to other countries, and the UK saw the first lender ever being completely nationalised as was the case with The Northern Rock.
Subsequently many UK citizens lost their jobs or had their working hours cut as a result or the situation spreading to other industries and jobs that in the past were jobs for life were lost one after the other.
Bank workers once thought of as being in very safe jobs found themselves out in the cold and without employment.
The construction and industrial sectors were badly affected by the credit crunch and redundancy was rife among their staff, and even those still in employment often started to earn less due to cuts in paid overtime and so on.
With many earning less the need for debt advice and debt consolidation has become more common and necessary than at any time in history, and it is essential to seek debt advice for debt solutions as soon as it becomes apparent that there will be a financial problem. - 29866
This fact of life has become relevant to more people than usual during this period of recession precipitated by the crisis in the banking industry.
The heart of the economic situation started in America due to the reckless lending of the banks and building societies granting loans and mortgages to those who would never be in the position to repay their debts.
The main fault with the lending criteria was that loans and mortgages both to the private and business sectors were granted based on pure self declarations of earnings.
These self declarations of income were exactly what the term suggests and that is the applicant for finance simply declared their own earnings on a bill head or similar without any back up proof of any kind.
The lenders started to struggle just as their customers did and the system became close to collapsing.
This crisis spread to the UK and to other countries, and the UK saw the first lender ever being completely nationalised as was the case with The Northern Rock.
Subsequently many UK citizens lost their jobs or had their working hours cut as a result or the situation spreading to other industries and jobs that in the past were jobs for life were lost one after the other.
Bank workers once thought of as being in very safe jobs found themselves out in the cold and without employment.
The construction and industrial sectors were badly affected by the credit crunch and redundancy was rife among their staff, and even those still in employment often started to earn less due to cuts in paid overtime and so on.
With many earning less the need for debt advice and debt consolidation has become more common and necessary than at any time in history, and it is essential to seek debt advice for debt solutions as soon as it becomes apparent that there will be a financial problem. - 29866
