What is the credit crunch? How did it start? And how does it all link together?
In simple terms, a crisis caused by banks being too nervous to lend money to us or each other. Where they will lend, they charge higher rates of interest to cover their risk.
Inter-bank lending was seizing up. Overnight interest rates shot up above the level the central banks were targeting. They spiked to 4.6% in Europe versus an official rate of 4% and 6% in the US, versus an official rate of 5.25%.
Wednesday, July 1, 2009
In Australia the average credit card debt is likely to be more than $3200 , The typical family credit card debt is likely to be much higher , some are using credit cards to make mortgage payments , the Credit Crisis in Australia. It follows Laura, a 22 old young lady who has $20,000 debt and explores how she got into debt and gives sound financial advice about how to get out of debt.
Labels:economy Collapse Meltdown Credit Crisis