The Long Road to Recovery Since the Banking Crisis of 2008 Part 1 of 2

When the recession hit, there were many people who acted as if it came entirely out of the blue. Of course we know that’s not true. There were some people who knew all along that it was going to happen and had the data to back it up, even when they’re warnings went unheeded for many years. The general consensus instead believed that housing simply wasn’t like other markets, mortgages were paid on a consistent enough basis that it was deemed next to impossible that it could crash the way it did — after all, who can afford to be out of their home? However, there are still many people who don’t quite understand what happened, which can make it hard to take the steps necessary to prevent it in the future. We’ll walk you through how creditors failed to do their job, and how the recovery is currently going.

An Economy Built On Air

Saying yes seemed to be the only thing that creditors could do for a few years. Despite not having a solid source of income, it made seemed to make financial sense for them to give credit to whoever wanted it. The reasoning was that there were enough hard-working honest people to make up for the few bad apples. However, the more they said yes and the more interest rates fell due to exceptionally competitive loan offers, and the more the economy started to feel the foundation start to be pulled away little by little. As people wanted more and more, they became less and less able to pay for it all. Once 2008 hit, the housing crisis and recession put plenty of people out of jobs and caused untold bankruptcies for middle class families everywhere. This put a strain on not just the adults, but also young children across the country.

A Lack of Opportunity

It’s not pure rhetoric when people say that there are few opportunities for people to find a middle class lifestyle. The upper 1% does hold much of the wealth, and there is only so much money they’re willing to spend. Couple this with outsourcing labor and the replacement of workers with machines, and it can start to feel like an uphill battle for those who don’t have very many resources. It can also make it difficult to even want a credit card based on the problems it may cause later on down the road if someone loses their job or otherwise can’t afford to pay their bills.

Not Lying Down

The economy is not all doom and gloom though. Jobs are coming back to the market, however slowly. And there are ways for people to take power back into their own hands by repairing the credit damage that has been done. It’s not up to the government to solve our problems, but rather it’s up to us to start making smarter financial decisions when it comes to managing what we have. In the next part of this blog series, we’ll take you through how a credit rescue plan designed by a credit repair specialist can make all the difference when mapping out major purchases (and even smaller ones.) For example, you may be able to use your repaired credit report as a means to find a way to buy that second car or to finance college tuition.

Consumer Credit Auditors is a credit repair company offering credit repair services to those who need it, and we are happy to speak to anyone, regardless of their current financial status.