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In the wake of the most disastrous economic climate in recent memory, the world has really been brought to its knees. The recession and stock market crash of 2008 sent waves of change throughout most industries, as businesses and financial institutions tried to claw back to profitability. With the real estate bubble crippling the U.K. financial system, causing many large institutions to close their doors, consumers and businesses have both suffered.

The credit market has been one of the hardest hit in this time period. Although many financial giants are finally regaining their footing, they are more cautious than ever when it comes to lending. Consumers are finding it harder now than in the past to buy a house, a car or even apply for a low rate credit card. Those with perfect credit are even considered dangerous if they have not enough recent lending to show they are trustworthy customers. With consumers suffering from job losses and foreclosures, there seems to be little that can be done in the short term to rejuvenate the ailing economy.

The plight of the consumer is not where this ripple ends; businesses really suffer when spending slows. With less money being lent to potential buyers, small businesses are forced to seek more financial backing to be able to keep their doors open. The credit markets are just as dire, if not more so, for business lending as they are with consumer lending. Without ample collateral to back business loans, more companies are forced to file for bankruptcy in order to keep going.

Fortunately there are glimmers of hope on the horizon for the U.K. economy, and the world as a whole. It would appear, for the most part, that the recession is nearing its end. This being said, there is still a long road to full economic recovery. There may never be a time when businesses, and consumers, are able to borrow as they were before the economic collapse. We all hope for the time when the credit crunch has loosened its death grip on lenders. Only then can small businesses and consumers be able to obtain credit for the things they need, the things the U.K. economy needs to thrive.

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