Everyone agrees the UK is experiencing a credit crunch and now people are debating whether we are in a recession.
Either way the UK economy is experiencing financial difficulties and the government is looking to borrow more to stimulate the economy.
There is a lot of speculation as to why the credit crunch occurred to an apparently strong economy.
We think it is a real wake up call to many people who have been overspending due to the abundance of credit offered in the past. It is always best to try to save some money, even in good financial times. Because in reality you rarely know when the financial bad times will occur and for how long.
Please watch the following brilliant video as it clearly explains why the credit crunch occurred.
Are the banks to blame for the credit crunch and what can be done to avoid this from happening again?