Consumer confidence knocked by Northern Rock crisis

27 September 2007

A quarter of all UK consumers have become more concerned about their own financial situation in the aftermath of the Northern Rock crisis, according to independent research commissioned by credit reference agency Callcredit (1).

The over 55s are the most concerned group with 31pc of those surveyed increasingly worried about their financial health. Conversely, over half (53pc) of 18 – 24 year olds said that they were no more concerned now than prior to Northern Rock’s troubles.

Owen Roberts, Head of Callcredit Consumer comments: “The Northern Rock crisis and the credit crunch have clearly shaken consumer confidence, particularly among the over 55s. It is understandable that this group, who are more likely to have spent time building up a nest egg, would be the most concerned as it was a panic over savings that was hitting the headlines. Interestingly few people aged 18 – 24 said that their financial concerns have increased which may be symptomatic of these people relying more on borrowing than on savings.

“The most important thing for people to do is to take control of their finances. We urge consumers not to panic but instead to take a good look at their current financial status by reviewing their credit report”.

London-based consumers – who make up the most overindebted group in the UK (2) – stated that their views on their financial situation have changed the most dramatically since the Northern Rock situation came to light with 31pc stating that they are more concerned now than before. This is almost double the number of Scots, who appear the least perturbed group with only 16pc saying that their views have been negatively affected over the past few weeks.

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