As more and more individuals become convinced that fast loans are the only method of survival, the market continues to fumble and struggle to keep up with the world. With products such as fast loans on the market, it further muddies the waters making prognostication almost impossible for financial experts who deal with these types of matters. With fast loans and other types of nontraditional loans on the market, discovering the true rate of growth and the inclination towards failure of the market becomes that much more difficult for those experts who are trained for this type of work.

While fast loans can certainly keep you out of trouble in the short term, the long-term can be more difficult because of it, causing all manner of trouble for those individuals who were only seeking short-term relief.

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Stephen Gifford, Grant Thornton’s chief economist, says, “Despite the global downturn flattening the growth of personal debt and UK GDP over the past few quarters, debt levels continue to grow at a faster rate than the income the UK generates.”

“Although there is no cause for panic as personal debt is well covered by the UK housing stock, the figures clearly illustrate the continuing problem of growing personal debt levels in the UK. If the property market and economy continue to weaken, the current levels of personal debt will become unsustainable and there will be a marked increase in personal insolvencies.”

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RICS spokesperson James Scott-Lee, said: “The lettings market is booming with many vendors opting to rent their property while sales in the housing market continue to dry up.

“Many are willing to ‘hold’ and await the return of capital appreciation. Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns.

“Established investors have been reaping the benefits of the housing downturn for sometime and will continue to do so in the short term. However, ever increasing supply could have an impact on rental growth as tenant options increase.”

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“With income being squeezed in so many ways, those looking to raise some extra money may find that their spare room could provide the answer,” explained Phil Cliff, director of Abbey Mortgages.

“Demand for rooms is likely to be fairly high too and with the government providing tax free incentives for landlords, now is certainly a good time for those considering taking in a lodger.”

However, there are problems in the rental market as well, namely that many properties are not well maintained. A recent report on Housing shed light on the situation. “The recommendations in our report are aimed at benefiting both landlords and tenants by enabling them to use existing legal processes more productively thereby more fully realising the intended impact of housing legislation,” explained Professor Martin Partington, the commission’s special consultant on housing law.

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A statement from Northern Rock read in part, “The Company no longer applies any discretion to capitalise amounts in arrears when the borrower has made less than three monthly payments. These revised procedures have contributed to the increase in arrears reported in the first six months of the year.”

Adam Sampson, chief executive of Shelter, said: “With repossessions soaring, private sector rents rising, thousands stuck on the council housing waiting list and hundreds of homeless households trapped in temporary accommodation, it seems everyone is feeling the effect of the current housing crisis.”

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Chris Brown, president of the NAEA, reports: “Members have reported that the first time buyer market is slowly increasing with 11.8 per cent shown as the percentage share of first time buyer sales in June.”

“For first time buyers who have the adequate funds in place and can secure mortgages, now is a time they can operate as opportunists and take advantage of the market and the properties and prices currently available.”

“Confidence needs to be restored and this can be achieved if the Government, Bank of England, mortgage lenders and various other bodies work together to ease the pressure,” Brown added.

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Terry Smith, an influential City commentator and chairman of stockbrokers Collins Stewart, said: ‘It is every bit as true today as it was in the Thirties that, if America sneezes, the rest of the world will catch a cold.’ Asked if he thought the crisis had reached its zenith, Smith said: ‘We are nearer the beginning than the end. I’m afraid there is going to be more pain - quite a lot, actually.’

Liberal Democrat Treasury spokesman Vince Cable said: ‘Things always tend to be more dramatic in the States, but what happened at Northern Rock showed us that there is an extraordinary amount of complacency by the authorities on this side of the pond.’

Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: “Many homeowners will be plunged into a borrowing underclass in July when their fixed rate deal comes to an end. Banks are cherry picking customers, leaving many people unable to find affordable deals to service mortgages taken out in better times, when they were plentiful and easy to get hold of.

“However, burying your head in the sand isn’t going to help. Anyone whose fixed rate deal is coming to an end should start planning at least three months before the product is due to finish.”

David Kuo, Head of Personal Finance at money website Fool.co.uk, says: “The increasing dominance of banks in the market for new mortgages is a worry for anyone looking to step onto the housing ladder.”

Tim Moss, head of loans at moneysupermarket.com, said: “The rise in payday loans is astronomical and symbolises just how difficult people are finding it to cope day to day. As disposable income is being squeezed through increases in the cost of food, fuel, utilities and general living necessities, these loans are increasingly used to help those on a tight budget.

“Payday loans can be useful as a short-term credit vehicle. They are a bit like taxis -convenient for short journeys, but if you are going a long way, there are much cheaper ways to travel.”

Tim Moss a loan expert with MoneyFacts stated, “Payday loans have a maximum term of 30 days, with a typical interest rate being 25 per cent per month. Borrowing £80 for a month and repaying £100 is a better deal than going into your unauthorised overdraft. They should only be taken out when it’s absolutely necessary and you are sure you can pay it back quickly. Anyone looking for longer term credit or unable to pay off the debt immediately, should steer clear of them. It would be wiser to borrow the cash from family or friends or arrange an authorised overdraft with your bank.”

“Of course, the best solution is to sit down and analyse everything you are spending your money on: Are there any potential savings you can make and is all of your spending essential? Then get in the habit of making regular contributions to a high-interest current account, so there is always money available should you need it.”