by Rachelle de Bretagne

Created on: October 02, 2008

The financial crash is having an impact worldwide. We hear all about companies going under and Governments trying to bail them out, but what does all this mean to the man in the street? Living as far away as France, my life has been changed and put on hold because of what is happening worldwide. Even those of relatively little income are seeing the effects all over the world. In France the changes which have occurred over the past couple of months have left me in debt, and concerned about my future.

*Housing.
*Pensions.
*The domino effect.

Housing.

Suddenly in France the housing market has dropped. Houses which we saw as a solid investment are now dropping in price, because the demand isn't there any more. One may ask why this has changed, though what has changed is that borrowing money is not as easy as it was, and therefore there are less people buying homes. A couple of months ago, the contracts were signed on my home for a sale to a British couple. Since the crash, their Building Society have refused them their finance, based on stiffer criteria than ever before.

The problem comes from people spending too much money and taking for granted that they could. Every day on advertisements, we see people being offered financial solutions, though in effect these are a false promise of security, and only offer changing the way in which we borrow money to make ends meet. This usually means prolonging the debt over a longer period of time.

The housing market has slumped like never before. Suddenly our home which was worth almost 300,000 Euros will be lucky to sell for 250,000 because people aren't buying and banks no longer keen to lend.

Pensions and savings.

All of our lives we are told to save for our old age. With the financial crisis, how much can we trust in our savings being safe. Recently ownership of my own bank has changed and instead of investing in a UK market, now my funds have been transferred to Spain. It's all within Europe but seems so distant to what we are accustomed to that for the little man on the street, the whole financial mess is a worrying problem indeed. Being offered a pay-off by my pension company last year, who I believe were wise enough to see the flood gates opening, I am glad I had the sense to keep my pension, though many took the offer, thinking that short term wealth was better than future investment.

Savings are giving low rates of interest, and it is baffling to know where to invest your future now, with companies going under all over Europe,

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