Credit crunch ‘has sparked economy drive’

The credit crunch has prompted millions of people around the UK to try and improve the state of their personal finances, it has been claimed.

According to research by Friends Provident, a third of all British consumers are planning a “complete overhaul” of their finances in response what is perceived as widespread economic uncertainty.

Of those people who are looking to manage their money more effectively, around 13 per cent plan to stop adding to their credit card debts and almost the same proportion are aiming to restrict their social spending.

Additionally, despite acknowledging that borrowing from friends and family put a strain on personal relationships, millions of Britons are now looking to these sources for financial help, Friends Provident reports.

Director of marketing at the financial services firm James Ward said: “The credit crunch is already impacting on consumers, both financially and psychologically.

“The trick is to harness this heightened awareness and to do something positive,” he added.

A recent report from CreditExpert.co.uk suggested that millions of couples around the UK are avoiding potentially important financial and debt management issues.