credit crunch
Meaning(s)
1. a period of economic uncertainty in which financial institutions are less willing to lend money
Popularity
Medium
Professional
Medium
Social
How to Memorize
I can't get a loan due to the credit crunch
Analysis
This expression refers to an economically challenging period in which financial institutions, like banks, are wary of lending money due to a fear that the borrower(s) will default. A 'credit crunch' typically occurs as an extension of a recession, and/or after a period where lenders have been overly generous in providing credit. It can be used in both a social and professional context as it can have a pervading impact on people's lives.
Social Examples (Advance)
- I've been trying to sell my house for a year now, but it has been scuppered by the ongoing credit crunch.
- The credit crunch has been affecting lower-income families disproportionately.
Professional Examples (Advance)
- There is no way we can take the risk of expanding our business during a credit crunch. We will have to wait until the economy picks up again.
- The credit crunch has hit that industry hard. A lot of businesses have gone under.