Car loans 'will be tough to come by'
In light of the money meltdown in the states, Australians have been warned that this may soon filter down into their ability to obtain lending such as home and car loans.
Money expert Karina Barrymore, writing for the Herald Sun, has pointed out that across the globe, about $5 trillion has been wiped off the value of various banks and loan providers, with $150 billion disappearing from lenders in Australia.
Because of this, it is likely that many home and car loan providers will tighten up their lending criteria in order to protect the remaining money they’ve got.
“That could mean if you want to borrow money to buy a house or car or start a new business then pickings could be slim – or the <a href=”//mozo.com.au/“>interest rate could be high,” she warned.
In an attempt to remedy the problems in the US, President Bush has recently put forward plans to buy up all the bad debt owed on items such as mortgages and car loans in an attempt to limit the chance of further collapses.