CHESTER, England, September 13, 2012 /PRNewswire/ --
• However, nearly half of adults think there is still a long road to recovery ahead
• Almost one in five feel the recession will never end
• Brits ditch the 'buy now, pay later' attitude of the boom times
After five long years since the start of the credit crunch, when Northern Rock collapsed, one in six (14 per cent) Brits are now coming to terms with the fact their finances will never be the same again, as they see the 'recession' as the new norm and therefore, will have to just 'get on with it'.
Research by MoneySupermarket, which looked at the impact of the economic climate on the nation's attitudes to their finances, also found many consumers are pessimistic about when things will start getting better. Just under a half of UK adults (47 per cent) believe there is a long way to go until the recovery begins, and almost one in five (18 per cent) believe the tough economic climate will never end.
Some Brits remain optimistic, however, with 13 per cent believing the recession will end in the next few years. Those aged 18 to 34 are more optimistic about the end to the recession with one in five (17 per cent) feeling more confident about the economic outlook compared to 11 per cent of those aged 55+.
Thinking about the effects of the last five years on their finances, almost half of UK adults (45 per cent) are concerned about the increased cost of living which has squeezed their income. MoneySupermarket's recent Affordability Tipping Point research found over a third of the adult population believe a rise in monthly outgoings of just £50 or less would push them to financial breaking point.**
One in ten Brits are very concerned about their job security and similarly are very worried about being in negative equity.
Attitudes have changed as a result of the financial climate of the last five years. One in three (33 per cent) Brits recognise the 'buy now, pay later' culture pre-credit crunch was wrong and over a quarter of Brits (28 per cent) now see the importance of having some savings in place.
Kevin Mountford, head of banking at MoneySupermarket said: "There is no doubt that the past five years has seen the biggest impact on consumer finances since the eighties. We have all been affected by the increased cost of living, while the lack of affordable credit, little or no pay rises, increased unemployment and reduction in benefits has put further strain on households. With the economic outlook continuing to remain uncertain, it is no surprise many consumers are feeling pessimistic about the future, and how they will cope financially.
"However, it is encouraging to see that despite the difficulties endured by consumers over the last five years, they are learning to take a more responsible approach to borrowing while placing more importance on the value of savings. Many see the current 'recession' as the new norm, and therefore need to adjust their financial products to reflect this. Whilst for many saving may feel like an impossible task, there are ways to make small cutbacks to help set aside a small amount each month to build up some protection. Savers also need to regularly review their products and ensure they are on the best deal possible to maximise their pots.
"Consumers should also look to switch their major bills, and when using MoneySupermarket, they could help to save over £1,000 - a substantial contribution towards helping achieve their financial goals."
*Opinium Research carried out an online survey of 2,014 UK adults aged 18+ from 28th to 31st August 2012. Results have been weighted to nationally representative data.
** Research conducted by Opinium Research between 13th - 16th July 2012 amongst 2,011 nationally representative adults aged 18+
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