People ‘afraid of not being able to pay debts’

Not being able to repay debts is one of the top fears held by people over the recession, new figures have found.

A survey conducted by Lloyds TSB has discovered that the most prevalent worries about the downturn include unemployment, less income and not being able to meet payments.

The researchers noted that there is a difference in attitudes between recession “novices” – those aged under 34 who did not experience the last slump – and “veterans”, who expect the slowdown to last longer than their younger counterparts.

In addition, the study showed that 21 per cent of Brits have suffered from ‘recession depression’ in recent months, while 17 per cent have had sleepless nights worrying about finances – something that may prompt them to seek debt help.

Commenting on the findings, psychologist Corinne Sweet said: “Recession novices will be feeling the greatest shock and worrying about how to maintain their lifestyles while paying off debts.”

Over 90 per cent of people have suffered with mental health while struggling to cope with debt, according to a survey by Mind.

By Jamie Price