Debt habits undergo a “distinct change”

There has been a “distinct change” in the debt management habits of Brits due to the credit crunch, according to a new report.

Entitled the Financial Face of Britain, the study from Lloyds TSB claims that the economic downturn has had an effect on the debt levels, as well as savings and spending power, of the UK population.

It reveals that 37 per cent of the public are saving less. In addition, over four million people do not have any savings at all.

Retail network director Mark Cockburn remarked: “It is difficult to put money aside with rising bills and ever increasing household expenses … what consumers told us they need is more guidance and advice.”

People in the under-25 age group were the least likely to set cash aside for a rainy day, the research found.

Meanwhile, a survey from Abbey has discovered that 2.3 million customers had switched savings accounts in a bid to maintain financial security in the wake of the UK banking crisis.

By Jamie Price