Global financial crisis restrains consumer spending

Posted 2007-11-8

Customer confidence has suffered a blow as a result of the US sub-prime mortgage collapse this summer, which triggered a global financial crisis.

According to research done by debt consultancy firm Thomas Charles in conjunction with polling company YouGov, Britons intend to restrict credit card use this holiday season. 

James Falla, Director of Thomas Charles, praised the public for its willingness to plan ahead: “The research that has been done clearly shows that people are thinking about how much they are spending and they are thinking about spending within their budget.”

However, he also expressed some concern as to the average consumer’s ability to rein in overspending during what is usually the busiest shopping period of the year. 

“I think that around this time of year it’s easy to almost make a resolution to do something, but it’s a very difficult time of year to do it - particularly when the natural instinct is to go out and spend more,” he said. 

Further research by the consultancy firm suggests that 15% of Britons own significant debt of over £10,000, with men found to be in higher debt overall than women.

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