Financial crisis ‘driving cautious approach to debt’
Britons are becoming more responsible with the way they handle money as a direct result of the financial downturn, new research indicates.
As the economic crisis rumbles on, new figures show people are taking a more responsible approach to money management.
Indeed, the latest Generation Recession Report, carried out by the Social Issues Research Centre (SIRC) on behalf of Friends Provident, reveals that one in three people have taken steps to put more money into saving accounts since the downturn began.
The nation’s driving propensity to save money was also highlighted in that of those Britons in possession of a pension and choosing to make additional payments, some 30 per cent were revealed to be continuing to do so, as a fifth of respondents believe that the onset of the economic crisis means there is a greater need to plan for the future.
However, it also appears Britons are keen to get to grips with money owed on credit cards and other forms of debt as a quarter of 26 to 30-year-olds claim that the fact they are in the red is unacceptable. Among those over the age of 55, however, this falls to nine per cent.
This, author of the SIRC report Dr Peter Marsh suggests, could be a sign that young people are taking “a rather more cautious approach to debt than that of their parents”.
For those struggling with their debts, making use of 0% credit card deals could prove to be of assistance.
Simon Clamp, managing director UK at Friends Provident, claims that despite the negative impact that the ongoing economic recession is causing for many Britons, “it is encouraging that a significant number have taken it as an opportunity to become more financially savvy”.
“Increasing financial awareness amongst consumers can only be a good thing and this is demonstrated by the numbers who are reducing their debts and becoming more focused on their futures and saving for the long term,” he adds.
The impact that the recession is having on people was also shown in research published by Yorkshire Bank last month, which revealed that since the onset of the downturn 64 per cent of consumers have changed their attitude towards money.
Findings from the organisation also indicate that more than a quarter of people living in the north-west are looking to put money into a saving account on a monthly basis.
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Article Source:http://www.articlesbase.com/personal-finance-articles/financial-crisis-driving-cautious-approach-to-debt-1120976.html
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