Not since the 1920s has there been so much opportunity. As long established financial institutions fall in an almost domino fashion, there has never been a better time to invest. Share prices reach all-time low values allowing us mere mortals to become shareholders within the most revered institutions. Perhaps consider investing in an insolvency company. One of the industries which is making a killing from the fall of the giants. Never has there been a better time to be a cash buyer consumer. As it becomes increasingly difficult to acquire credit, for those with cash to buy, there are so many bargains on consumer items as companies slash prices in a bid to stay afloat.

Credit and debt have become dirty words in a financial climate where everyone is tightening their purse strings. The stigma of credit or debt does not have to be seen in this way. Even the most sucessful institutions have a credit flow without which, prospective speculation would not be possible. So, as an individual this rule also applies. Good debt is a loan which will eventually generate a return or will enrich ones prospects. For example: Investing in education, Investing in a business opportunity. A mortgage or a loan for a vehicle can sometimes be seen as good debt but there are always exceptions hence we will call this grey debt, for instance where the cost of the property or vehicle is excessive in proportion to ones earnings. A vehicle may offer the purchaser the opportunity to travel further to a place of work, therefore may improve prospects. A mortgage may return a profit if the investment increases in value.  Bad debt is any debt which is eventually unsustainable. Millions of people worldwide subsidise their incomes with debt and spend in excess of what they actually earn. Often this kind of debt is caused by people living beyond their means. Often (but not always) a result of consumerism and people buying things which they do not need and otherwise could not afford. Bad debt is often masked in denial from the debtor.

The banking crisis of 2008 is likely to be remembered as one of the most influential catalysts affecting how we look at money into the future. It will impact our lives in years to come as much as the environmental issues which we have had to embrace.  For too many years, the western world economy has been fuelled by excessive lending and overspending. As with climate change, the financial climate needs to be free from the denial that people have been hiding behind for so many years. The first step to solving a problem is the realization that there is a problem….