Is it just the banks?

Time to be controversial here.

Dennis Howlett has posted on his blog about how the banks are cutting his credit facilities. Richard Young responded by saying he's actually being offered MORE credit.

I'm in the same position as Richard. Only yesterday I got a letter from my bank offering me a personal loan.

The letter got filed - in the shredder.

I believe very strongly that debt is a Bad Thing and to be avoided whenever possible. My business doesn't owe anyone a penny. My only personal debt is my mortgage. And I pay my credit card off every month.

OK, apologies for that brief blast of trumpet-blowing. But that does mean that, despite getting made redundant, I'm not in too bad a position to weather the current credit crunch. Touch wood.

Readers of my Cut the Guff e-zine will know that I often don't have much time for spieling salesmen. I overheard one recently recommending to a potential customer that he ditch the day job, take out a bank loan and start up his business full-time.

I had a hard job not to snatch the phone and yell, "NO! Don't do that! Keep your job, don't go into debt, and build up your business slowly!"

And I bet Stefan Topfer would agree with me.

M