Credit where credit's due

The global financial system's taking a battering. Credit will be harder to come by and we're being advised to reduce debt, tighten belts and save for an uncertain future.  But if you were a good borrower before the credit crunch, taking out loans or cards you could afford and keeping up repayments, you will still be able to get credit.  It's those who have been borrowing beyond their means, taking further hand-outs to repay that debt, that have been shuffling ever closer to a personal financial precipice. For some, there may be no option but to hurtle lemming-like over the edge. As someone who recently took out a self-cert mortgage, I am amazed at how much money was on the table with little evidence of our ability to pay it back.  Luckily, I had a great IFA, who kept us focused on taking out a mortgage that we could afford come economic rain or shine. It's easy to fall foul of the system though -- I recently heard of family friends in dire straits after a remortgage and arrears on the repayments have left them facing repossession.  When this happens to real people you know, you can't help being afraid.  I'm going to dust off my piggy bank and start saving for a rainy day.