Category	Date	Subject
Car Warranty	11/07	Warranty Cover Price Doubles at Franchised Dealers
Car Warranty	11/07	Over 1 Million Cars Will Break Down Just Outside of Warranty
Debt & Motgages	11/07	The Credit Crunch
Car Warranty	11/07	North South Divide as Garage Charges Top £183 an Hour
Energy	11/07	Avoid the Winter Bill Chill
Energy	10/07	Top 10 Tips for Saving Money on Energy
Prepaid Cards	10/07	ABC’s of Prepaid Cards
Energy	10/07	Barriers to Switching Energy Supplier
Credit	10/07	Consumer Credit Crunch
Energy	10/07	Consumer Prices are Standing Still – Why?
Energy	10/07	Lock in Savings Before the Winter.
Energy	10/07	Why do I Have a Paper Bill? 10 Reasons why you Shouldn’t.

Articles supplied by Xelecta plc, Warranty Direct Ltd and Brightside Plc

Consumer Credit Crunch - What This Means to You

Tod Ward & Florian Ritzmann

One thing most of us share is the need for our credit cards. We have all come up a little short once in a while and used our plastic to bail us out. We tell ourselves that our credit is under control and that we don’t spend beyond our means. But are we?

High street banks are beginning to say that we are not, and as a result they have started cutting credit limits and declining increasing numbers of credit-hungry consumers. Problem borrowers are now costing the banks millions and they are feeling the impact on their bottom line.

Barclaycard has thus far led the charge, as the credit crunch that has rocked the financial world at large tightens the squeeze on the consumer. Barclays has already lowered the credit limits of over half a million existing customers. The bank has also started to refuse credit to new customers - 50% of new credit applications are being turned down and the company is keeping a very close eye on its customers for further signs of trouble.

What does this mean for you?

This year, over 1.7 million people have already had their credit card application turned down, and while experts are saying that the credit crunch is here to stay, this number can only go up.

The likelihood that other credit card issuers will follow Barclaycard’s example in the coming months is therefore big, so even if the Bank of England drops its interest rates in the coming months, chances are that consumer credit will become much harder to get at any rate. Consumers who have never had any issue with their personal Credit will be paying for the misdoings of those borrowers that overextended themselves.

Yet getting credit today is still relatively easy…but you must act now. Should you need credit, wish to transfer a balance – or even if you want just a different card that pays you more in terms of travel or shopping rewards – it is advisable to get your application into your lender and approved as soon as possible, even if you don’t need it right away. Click here to see what Cards are on offer with our Cards comparison tool.

So now is the time to act if you think this may affect you. Get your new credit card now or do some research to see if you can shift your existing debt to a more forgiving card with better rates and features. And here are some tips to make sure that you escape the credit crunch unscathed:

1. Keep up with your payments! On your credit card statement, you will always see a “minimum due” amount. Make sure AT THE VERY LEAST you pay this amount on time. Although it is better to pay more, just paying the minimum amount won’t hurt your credit.
2. Keep to your limit! Make sure you don’t exceed the credit limit set on your card. Every time you go over your limit, it is bad for your credit. It is good practice to keep at least a 15-20% buffer between your outstanding balance and your credit limit.
3. Keep account! Keep track of what you spend; the cheques you write and the cash you withdraw - it all adds up quickly. Always know how much money you have got available.
4. Keep to your budget! Make sure that the amount of money coming in is greater than the amount going out. You may have to give up a few nights out, but you’ll thank yourself in the long run. Don’t be paying for last night’s dinner next year.

And if you really are in trouble, whether it is with your mortgage, your credit card bill, or a loan, or really any other household bill – make sure to pick up the phone to the lender and discuss the issue. If they know of the problem, they can help you.

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