Borrowing, Spending and Savings Habits Largely Unchanged By Recession
Published: 29 November 2010 By MoneyHighStreet Staff Leave a Comment
Many claim to be worried about their personal finances but despite this research by HSBC has found Britons are resistant to changing their saving, spending ro borrowing habits.
The survey of 1,100 adults reveals that for the majority of Britons, the recession has not made them alter their financial habits over saving, spending or borrowing.
There’s rather a mismatch between what Britons say and what they are doing as a result of the recession.
Whilst over 75% say they are worried about the economy and their financial position, and the same percentage say they feel less secure about their income going forward, nearly 70% have not changed their financial habits to address this.
Women are more worried and insecure than men, however, they are less likely to have changed their financial practices as a result.
Those aged between 18 and 24, have been most affected by the recent turmoil with more than 90% saying they are worried about the economy and 80% saying they feel insecure about their future income.
Richard Brown, Head of Savings for HSBC comments: “With nearly eight in ten Britons worried and insecure regarding the current economic turmoil you would expect them to be spending and borrowing less and saving more. However, our research shows that only a minority have actually altered their financial habits.
This suggests people either have their ‘heads in the sand’ and do not realise the need to change, or that they have simply decide to stoically ride out the recession by refusing to alter their ways.”
As a result of the recession, almost 20% are saving less, although 14% claim they are saving more. The remaining 67% say their savings habits have not changed.
The overall attitude to spending has also remained largely unchanged with just over a third having changed their spending habits.
Women have curbed their spending far more then their male counterparts, with 21% saying they are spending less compared to 17% of men.
People in the North East are most likely to be spending less while those in the East Midlands are most likely to be spending more.
Interestingly some 5% of people are more likely to borrow money, perhaps worryingly they feel this is a way of addressing existing debt problems? If this is truly the case seeking professional debt advice would be a better option to consider.
Nearly 70% per cent of Britons haven’t changed their borrowing habits as a result of the recession.
HSBC serves 15.6 million customers in the UK and employs approximately 58,000 people.
In the UK, HSBC offers a complete range of personal, premier and private banking services, commercial banking for small to media businesses and corporate and institutional banking services.
HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.