Credit crunch ''has changed consumer attitudes to debt and spending''

A new report has suggested that the credit crunch has completely changed British consumers'' attitudes towards spending and debt.

The survey by Yorkshire Bank revealed that one of the impacts of the credit crunch and associated economic downturn has been to undermine the ''spend now, pay later'' culture that had previously thrived and lead to rising debt levels among consumers.

In fact, the research showed that 77 per cent of Brits now believe that paying for a high-value item is more satisfying when they have saved for it, rather than using borrowed cash to finance it.

According to the study, the credit crunch has also made people from the UK more financially prudent – with 73 per cent stating they are more careful with their money now compared to 12 months ago.

Gary Lumby, head of retail banking at the lender, commented: "It seems people are finding that a more prudent approach to managing their finances brings greater rewards and satisfaction than the days of cheap credit.

"The current market conditions are great for savers, so we''re encouraging our customers to look at the many savings options which offer generous interest rates."

The most recent figures from Credit Action suggested that total personal debt in the UK topped £1.44 trillion at the end of June – up £98 billion in the last year.