As this credit crisis continues its deepening, more and more people may find it too expensive to ask for credit money. E.g. those who have subprime credit cards will find it harder to be eligible for car or real-estate loans. Even clients with will need to make it higher. In addition the value of the retirement savings may be toppled.



The situation generally looks like the result of wrong solutions made by banks and approved by their debtors. In the total sub-prime prices growing makes credit unprofitable for even prosperous clients. Together with lesser successful borrowers they will decrease consumer spending. Taking into account the highest percentage of consumer's expenditure within our economy we can begin to think about upcoming recession.

The threat of this possible recession has already lead to revise the part of their credit score calculation algorithm towards better security of credit organizations but to greater burden of average consumers. TransUnion, one of the national credit bureaus, has changed its policy too. Nowadays if you wish to apply for best rates the bureau recommends to have a score higher than 680, while it was 650 for many years.

Even so, people continue to borrow more and more sums on their credit cards. And it happens together with speeding inflation because of dollar's value decline and growing difficulties with applying for a job.

Such is the first, evidently visible side of the trend. However there is another side. The side of safety.

The best individual way to deal with these matters is to make your personal finance more realistic. Generally, this means the following:

Try to cancel any debt except some long-term one, like mortgage. Thereafter use your occasionally only. At least - as little as possible. Make only those purchases that you can cover by your bank account savings. Moreover, change your financial behavior towards greater level of saving. It will be like your potential insurance. Of course, it doesn't mean the need of serious rejection of your habitual life and its enjoyment. Just try to be more economical.

Speaking again about Mass-Media efforts to frighten people with the news of approaching disaster I want you to be much more self reliant. If you believe that your steps are the best for you ? then they are. ?Time will show us".