Credit Crunch

A "credit crunch" is a situation where there is a sudden decrease in the availability of credit from banks and other lenders in order to reduce their own risk.

To make sure they are no longer at risk, lenders have made it harder for people to get loans and mortgages by tightening their lending policies and charging higher fees.

This can affect people as there are fewer methods to get out of debt, spending may be cut, and repayments may increase.

The credit crunch can also affect businesses, as people are not spending as much, and affect job seekers, as companies are less likely to want to take on more staff.

The council and its partner organisations are looking at ways to help Rotherham residents and businesses.