Is credit becoming as hard to get as cash?
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The United Kingdom has seen it’s fair share of economic hardships in the past but I wonder if the current situation rates as the worst ever? you’ve got people facing negative equity from vastly over-valued homes resulting from the housing boom, banks drastically cutting their mortgage lending and even more you have credit card providers slashing the credit limits on the cards of people who have been long term and reliable repayers.
As for ready cash…anyone remember what that is…? we have all become so reliant on credit that it is not so much the lack of a cash flow which makes things so hard, but the credit card companies pulling rug out from under account holders which is causing the popular rush on solutions such as payday loans. And it’s no wonder; one day you have a credit card with a decent and manageable limit of say, £5000 - you’re thinking ‘Ok, that’s enough to get us through till Xmas’, next thing you have a letter from the bank informing you they have slashed that limit from £5000 down to £1500 and you are pressing the panic buttons.
When you consider that these payday loans don’t carry an interest charge (should you pay the loan off before payday) it is logical that folk are going for these rather than feeding more money to the bank by way of doing cash advances on their already over-stretched credit cards.
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