Consumers' Credit Getting Not So Easy

Dallas Morning News (10/13/08)
More people were able to purchase homes as credit was expanded over the past three decades, but experts now believe it will become more difficult to borrow money for a prolonged period. The credit crunch means that prospective home buyers may no longer be able to purchase homes with interest-only loans or obtain loans that allow them to borrow more than the value of the property. Home buyers will need to make substantial payments and down payments, and they also may face higher interest rates; while borrowers across the board will find it more difficult to open a credit card and carry large balances. "This entire credit crunch is a wakeup call to anybody who was attempting to borrow their way to prosperity," says Greg McBride, senior analyst at Bankrate.com.