8 Good Things About the Credit Crunch
It is very hard these days to watch the news or read your daily newspaper without being constantly bombarded by predictions of doom and gloom and worse days to come due to the current credit crunch. Large banks are falling like flies after a lengthy fanatical high fuelled by a long greedy lending binge. With an increasing number of large businesses collapsing and the promise of many more to come, people find themselves constantly battling with feelings of uncertainty about the future were catastrophe seems to be looming just around the corner. However, we conveniently forget about the many perks that might result out of all this misery and we seem to have a strong tendency to push aside any optimistic ideas in keeping with the general doomsday mood that the media keeps inflicting upon us. The following points might help add a pinch of salt to our general perception of life and project a flicker of light towards the end of the tunnel. 1 High Inflation With inflation edging just below 5 points, things are getting more expensive every day. Yes, we are coughing up increasing amounts of money for the daily essentials and most of our salaries will not keep up with the increase. But for those of us who have debts and mortgages -which is probably a large majority as a result of the government’s last ten years economic policy- things are not as bad as it seems. With inflation figures very close to the Bank of England interest rates, we are paying our mortgage lenders a smaller margin of profit in real money value. For a typical £100000 mortgage, inflation alone is reducing just under £5000/year of the real value of the money owed. Sell House Fast