HERE is a 30 second guide to the credit crunch courtesy of thisismoney.co.uk.

Q: What's the credit crunch?

A: A credit crunch is what happens when banks start hoarding cash like it is going out of fashion. If the supply of loans evaporates, the economic outlook quickly becomes soggier than a day-old bowl of Weetabix.

Q: Is it happening?

A: With America's mortgage market in meltdown, banks are becoming very wary of whom they lend to.

They are particularly averse to dealing with financial institutions that might be exposed to repackaged sub-prime US loans - the ones doled out to low income households.

The result is that the cost of borrowing has risen well above target rates set by institutions like the Bank of England.

Q: Should I worry?

A: Although the term is being bandied about by all and sundry, it is actually a bit premature to say we have a widespread credit crunch going on - at least in Britain.

It is still easy to get a mortgage in the UK, though only if you are a good credit risk.

On the margin, people who have patchy credit records are finding it more expensive to borrow, and banks are tightening their lending criteria.