The Credit Crunch Finding Money and Loans

With the current economic meltdown, much of the media's attention is focused on Wall Street. But what about Main Street? Yes, the stock market has plummeted, and yes, there is a lot of blame to go around. The federal government has bailed out huge corporations like Fannie Mae, Freddie Mac, and AIG. They've arranged for some companies to buy out other companies. They've enacted legislation that will pour $700 million into the ailing U.S. economy. But it appears that each of these rescues or bailouts has largely served the interests of big business, and hasn't addressed the real fallout: the credit crunch that is making it difficult for people to find money and obtain loans.

Hanging On

In times of economic scarcity, lenders tend to hang onto their money. The freezing of the credit markets is often reported in the context of affecting the ability of business to get operating capital to make payroll, pay their vendors, and so forth. But what about the regular people who live in the U.S. who may desperately need loans but who don't have the credit necessary to obtain them?

The Good News

Well, the good news is that there are still ways for people with poor credit to get loans, and for people who are in financial straits to find a way out of the morass. The first step is to take a deep breath and calm down. In order to find viable solutions, you have to think clearly and go about the business of finding the right resources that will help you to solve your problems.

Potential Solutions

There are any number of ways that people can get credit, repair credit, and obtain loans. Here are just a few:

Credit Cards - There's a chicken-and-egg dilemma with credit cards. To improve your credit, you need a credit card, but in order to get a credit card in these tough times, you need good credit. The solution? Selectively apply for credit cards. First, start with a secured credit card, which is similar to a debit card in that the money you charge is withdrawn from a savings or checking account. Once you establish a track record with the company, they will most likely issue you a credit card. Another tactic is to apply for a store credit card. You'll likely have a low credit limit, but that's okay. The idea is to charge something small each month, and then pay each bill on time. A history of on-time payments is a surefire way to build your credit.

Eliminate Debt - In order to get your credit back in good standing, you should take decisive steps to eliminate your current debt. You can often negotiate lower interest rates with lenders, and then focus on paying off the highest interest rate loans first (but make sure to continue paying the minimum payments on the other cards or loans).

Debt Consolidation - If you have a lot of debt, your best bet may be a debt consolidation loan. This will enable you to make one monthly payment instead of a dozen different payments. The key here is to resist the temptation to rack up additional debt.

There are many more potential solutions for bad credit loans, debt restructuring, and other money issues. A good online source will tell you where the money is and how to get it, as well as provide valuable advice about all the options open to you.