A significant number of Britons are worried about the
country's economic prospects, new research shows.
In the Cracking the Credit Crunch: Recession Veterans vs
Recession Virgins study by Fool, it was revealed that 17
per cent of people believe Britain is already in a state of
recession. Recession veterans were indicated as being those
who have experienced economic difficulties during the past
40 years, with recession virgins yet to face the impact of
a slump in the monetary markets. Findings from the personal
finance publication also indicated that one in five
respondents admit being filled with fear at the smallest
hint of an economic downturn.
The drop was attributed to the continuing impact of the
credit crunch, which was seen the availability of cheap
loans and other types of borrowing diminish. Consequently,
just under three-quarters (74 per cent) of Britons claim
that they are to change their spending habits to help
protect them against a financial slump.
Following an economic downturn it may be possible that
significant numbers of consumers develop problems in
meeting demands on their finances. Such areas could include
home loans, store cards and mortgage repayments.
An estimated 41 per cent of recession veterans claim that
recent difficulties in the financial markets have already
had a negative effect on their own money management. One in
three of people yet to experience a slump are reported to
be "clueless" about the predicted difficulties that they
may face. In addition, a third of recession virgins believe
they are in a fiscal situation where they are forced to go
into the red. Furthermore, 33 per cent of Britons state
that they are unable to afford saving money.
Commenting on the research, David Kuo, head of personal
finance for Fool, said: "The term credit crunch has become
a part of our everyday vocabulary over the past eight
months but it's instructive to see how people feel about a
looming recession. In an economic downturn there will be
opportunities and threats and we can take steps to maximise
the first and minimise the second. And simple measures such
as reining in spending will ensure that we have a pot of
spare money tucked away to see us through a slump."
Mr Kuo reported that those who have cash to spare may be
able to manage various financial commitments such as making
mortgage repayments or investing money into a savings
account. "It won't make the credit crunch go away but it
will make life more bearable until it does," he added.
Research from Fool also indicated that 31 per cent of
people think that a recession will last for at least two
years. Some five per cent of respondents meanwhile claim it
will carry on for an indefinite period of time.
For those consumers who are concerned about their ability
to manage money as 2008 progresses taking out a low-cost
loan now could be advisable. By applying for a UK loan it
is possible that borrowers can meet numerous demands on
their spending at once, leaving them with a single low-cost
repayment to make. This may be particularly helpful to
those experiencing difficulties in paying their mortgage. A
recent study by the Council of Mortgage Lenders revealed
that 27,100 homes were repossessed during the course of
2007.
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Abbi Rouse writes for All About Loans. Visist us today to
apply for secured UK loans, low cost personal loans, and
loans for tenants. Visit today
http://www.allaboutloans.co.uk
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