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But what is a credit crunch and how might you prepare?
During a credit crunch, banks significantly tighten their lending standards.
Loans become tougher to get. Banks that offer them might do so with more onerous terms like high interest rates or other restrictions — making such financing more costly.
Overall, it becomes harder, for example, for households to buy cars and homes or fix their roofs, and for businesses to hire, expand and open new stores or factories. A cooling…