It's crunch time for the loans market

As the 'credit crunch' starts to bite, you could end up paying more to borrow money. And things could get worse before they get better. So if you're thinking of applying for a loan, it might be a good idea to do it sooner rather than later.

The loan market is getting tougher as the year progresses and the 'credit crunch' starts to bite. This means some lenders will rein in their lending, tighten their criteria and increase rates.

Some secured lenders have already withdrawn from the market. And this is probably just the beginning. In fact, the worst case scenario is that people who have previously relied on credit to fund unsustainable lifestyles will now be declined for more credit. This could result in an increase in repossessions, forcing the loans market to further tighten their belts.

Those who find it difficult to get credit and anyone with a less than perfect credit history could find it impossible to raise credit - or have to pay more for it.

On the bright side, the Bank of England may lower the base rate this year, which could help to offset rate increases.

However, the general consensus amongst experts is to act today rather than wait any longer.

Debtbuster Loans has access to an exclusive lender. So where other lenders have scaledback their lending we have increased ours in order to help our customers.