- Crash Indicators Are Starting To Appear – Again
- Adverts on TV For Secured Loans – Rising
A lot of financial journalists will often cite data from banks and Governments to help predict the next crash. But we have a better way of predicting what is over the next horizon – TV adverts. We have started to notice that the number of adverts on TV for secured loans is rising and this always means one thing, unsecured credit is drying up and lenders want security.
If you were to go back to the years around 2004 – 2005, you may remember that there was the usual type of adverts for unsecured loans. Then around 2007, it changed. These adverts started to move towards things like the safer secured types of lending, buy your property for cash etc. Almost immediately after, the economy hit the buffers and the economy started to fall over.
Coming back to modern times, lenders are again starting to ask for security and the “we buy your house for cash” buyers are again pitching for business.
So what can you do?
In a way, borrowers don’t need to do anything. It is signs like that that actually mean lenders are the ones with problems. But it may be worth thinking about whether or not you need a loan, because if the economy is about to go south. Your ability to make repayments in the near future might be affected.
It might also be wise to start putting off any big spending on items like cars or holidays. That is especially true if you need to pay for these things with credit. It could be argued that if people put off spending, a crash will almost certainly happen. But in reality people should just concentrate on their own finances and not that of the economy.
We’ve also said the next downturn to the economy is both overdue and when it does happen will be one of the biggest ever seen. It's worth also mentioning that the data that predicts a crash also indicates something big is just over the horizon.