That’s the spirit girl….
The third instalment of my alternative look at the credit crunch (effectively borne out of a fatigue for seeing the same stories published time and time again), looks at the potentially positive aspects of narrowing credit acceptance criteria.
So how could these stringent conditions possibly improve one’s financial and social vista?
(1) Dodgy Mortgage Brokers Tackled by the FSA – With the mortgage market in a state of disrepair and under the microscope as a result, the Financial Services Authority (FSA) has been able to wheedle out mortgage brokers who perpetually recommend sub-prime loans. After all, it was the US sub-prime crisis that imposed the credit crunch on us in the first place, so any operation that removes sub-prime peddling brokers from the financial food chain has to be of benefit.
(2) Savers Get a Better Deal – With banks haemorrhaging money from their lending, current account and trading divisions, they need a stable incentive with which to entice customers, look generous and claw profits back. Enter the savings account, with Halifax, Icesave and Abbey all doing their best to offer some of the most attractive savings account deals ever entertained in the marketplace.
(3) Property Bargains Aplenty – For those that do have money to invest, the credit crunch is likely to upturn a number of canny bargains in the property market. What’s more, with the housing market quiet and estate agents kicking their heels, you’re likely to get a more tailored and personal service if you do venture out house hunting.
(4) Improved Customer Service and Incentives – While consumers have less disposable income to throw around, industries will have to try that little bit harder to snare your business. Expect attractive incentives, especially in retail, utilities and communications sectors, to become commonplace, and good old-fashioned customer service to make a welcome return.
(5) Bad Mood, Great Songs – According to music recommendation site TheFilter.com, the gloom of the credit crunch is making more if its users download depressing songs by the likes of The Smiths and Joy Division. The Smiths and Joy Division are cool bands, so when we’ve finally wriggled free of the credit crunch stranglehold, there will be more cool people and fewer squares.
(6) Don’t Borrow What You Can’t Afford – Strict lending criteria means there’s a reduced chance of individuals borrowing more and more money only to find themselves stuck in deep financial mire. The credit crunch will force people to face up to their debts and try to do something constructive about wiping them out.
(7) Less Air Travel, More Good Air – With the credit crunch biting hard this summer, a significant number of UK holiday makers are swapping planes for automobiles and motoring off to some retro seaside hotspots. The airmiles saved will reduce the carbon footprints of one and all.
(8) Unprecedented Credit Card Deals – If your credit record is blemish free, you have a balance to transfer and you’re confident you can clear a credit card balance at the end of each month, then this is the perfect time to be switching credit cards. Capital One blew the credit card market wide open last month with a card that offers both 15 months 0% on balance transfers AND 15 months 0% on purchases. Sure, one cancels the other out if the account is miss-managed, but use the card wisely and you could save a tidy sum.
(9) Asda Goes Nutty on Staple Food Prices – The credit crunch has prompted all out price war between the nation’s main supermarket chains, with Asda pushing the boat out especially far. Bread, lettuce, butter, eggs, sausages and melons have all been reduced to 50p for limited periods. Catch them while you can.
(10) Annuity Rates on the Rise – That’s correct, some financial products are still thriving. An annuity is a guaranteed income for life, which most members of defined contribution or money purchase pensions buy with the majority of their pension savings. Due to falling corporate bond prices, anyone looking to cash in their personal pension this summer will be significantly better off than before the credit crunch kicked in.
