Euro crisis increases consumer fears

The majority of British consumers are worried that the eurozone crisis will have a negative effect on their personal finances.

A poll by price comparison suite uSwitch.com has revealed 58 per cent believe the situation will have a bad effect on them, with 48 per cent believing the situation will directly impact on their employer.

Nearly two-thirds expect the euro to survive, but with fewer countries in it, while only nine per cent believe it will fully recover.

Personal finance expert at the site Michael Ossei said that while the UK is not in the euro, there is likely to be a knock on effect on British banks and through international trade.

He advised people to take "better control" of their own budgets, adding: "Having savings in the bank and reducing debt can help ease the pressure on your own finances."

Debt consolidation may be a wise move as the euro crisis looks set to rumble on, according to Keith Wade, the chief economist at Shroeders Asset Management.

He said Greece's election result and the formation of a pro-austerity government may only have "delayed, not dodged" its exit from the eurozone.

Posted by Paul Thacker