Most Banks

Credit Crunch Hits Most Banks

When the credit crunch hit many of us, my bank of all places, Bank of America was one of the first to be affected. Many of us found ourselves unable to make payments, or without the money we needed to pay them. Fortunately, Bank of America had no choice but to declare bankruptcy.

The credit crunch was all over the media at the time, and people began to panic. The governments in the UK and the US looked at Bank of America and saw a perfect storm; a bank which were virtually untouchable, and had seen its credit worthiness skyrocket with the boom in housing in the late 1990s.

Once it was declared bankrupt the fall out was massive. Bank of America's assets were sold off, people who were owed money were left struggling, and they were left in the dark about what was going on.

To make matters worse, Bank of America went bankrupt after the US government had already helped it with billions of dollars. Again, when you consider that one of the three largest banks in America, you can see how this is a perfect storm of events for someone to become rich quick.

Your worst enemy could be yourself. The thing about being in debt is that it is difficult to distinguish between what is real and what is not. That is where the power lies in your hands.

Credit cards are easy to get. If you don't have enough money for the card, the banks will happily write you a check to cover the bill. The card is basically your lifeline - and if it fails, there's not much you can do other than wait until you get more money.



The power is in your hands when you face up to the credit crunch. It's an opportunity to be in control.

Instead of waiting for your money to roll in, cut down on the number of cards you have. Cut them up and stop using them.

If you find yourself overspending, pay the card off as soon as possible. If you find yourself struggling to keep your bills in the black, it's time to apply for a new card with a low interest rate.for more check negosentro.com

When you feel the debt crunch hitting you, don't panic. The bank might be out of cash, but it's not necessarily going to declare bankruptcy.

You might have to change your spending habits a little, but the banks aren't looking to throw you into jail. All they want is for you to pay back your debts.

While you are waiting for the credit crunch to pass, cut back on your spending and start building your credit back up. As long as you follow the laws, the bank isn't going to report you to the credit bureaus as being debt stricken.