1. An increase in the requirement of central bank reserve.
2. An unexpected decrease in the collateral value used by the banks.
3. The lending policies of the United States financial institutions.

The steps to be followed when a credit crisis occurs are discussed below.

1. First, don’t get panicked. It will not help you to think on how to survive in the times of a credit crisis. There is always a fluctuation in the economy level.
2. Limit your expenses and spend in a reasonable way.
3. Make up a budget plan referring the books available that can help you to create a good budget, seek guidance from a financial professional.
4. Start paying your debts regularly and don’t allow them to exceed to a higher level.
5. Be careful when borrowing more money, do not get caught in the debt trap.

During the credit crisis, when applying for a loan or credit card it is best to shop around and compare credit offers on the market. The large banks and financial institutions are competing for your business and are offering some of the best credit deals seen in years. Be sure that if you have the capability to borrow money, that you take advantage of these special finance deals and get the best possible rate for you.

Thus, it is in your hands to face the credit crisis wisely and plan a proper budget so that you can live happily as well as satisfy your family members with what you earn.

There have been many industries within Australia that have been touched by the credit crisis, mainly mining, manufacturing and sales. One in particular that is of interest is the mining industry, one such example is seen with BP’s nickel mining site in Ravenshorpe, Western Australia. At the height of the West Australian mining boom, the industry was employing many Australians with wages starting at $100,000 per anum. The mining boom was partly responsible for the large increase in the West Australian and Australian economies, in particular housing prices in West Australia, sky rocketing to levels exceeding the traditionally high Sydney property markets. Average W.A families were using their extra income to purchase investment properties, forcing W.A housing and rental prices to go through the roof.

With the closure of mining sites, like Ravenshorpe, this has seen many families loose their expectionally high incomes and forced them to try and find jobs in Perth at a lower pay rate. There have been many examples of Perth families owing on 2 or 3 mortgages who can not pay them any more, forcing them to try and sell their properties in a market where no one wants to buy. Many W.A families have been dealt a blow with the credit crisis, like most everywhere else in Australia.

Have you experienced the same type of story as the Ravenshorpe case? There are many untold stories in Australia of hardship due to companies closing down. What effect has this had on the average Ausrtralian family and how are they coping with day to day life? Only time will tell how many Australian families have truly been affected by this crisis.