Debt News

Rapid economic change `caught out Brits`

7 August 2008

A financial website has said the sudden impact of the credit crunch has not allowed British consumers to adapt.

Moneyfacts` Darren Cook said that people have only been affected in the last three or four months, knocking consumer confidence.

"If that change had happened gradually in 12 to 24 months then people would have been able to adapt their household expenses," he said.

Mr Cook added figures released on decreased consumer confidence were not a surprise but did not make positive reading. However, he said last year`s healthy economy was "abnormal" and now is a more "normal" situation.

"It`s gone from one extreme to another," he said.

Had consumers had more time to react, debt management issues and arrears that are hitting some people may have been avoided, according to Mr Cook`s comments.

July`s Consumer Confidence Index released by Nationwide in partnership with TNS showed consumer confidence fell by 11 points to 51 and is 46 per cent lower than a year ago.