» Read the complete article

More than one in six Brits have been severely hit by the recession and the banking crisis – so if you are struggling right now it might be comforting to know that you are not alone.

According to market research company BDRC, 17% of Brits are ‘hard hit’ by the downturn, but everyone’s cutting back. The research categorises people into groups depending on their experience of the recession so far and how it will impact their discretionary spending in the next three months.

The overwhelming majority – 60% – are ‘Cautious’ and are adapting their spending as a result despite 34% feeling no adverse effects from the recession so far. Almost a fifth say they’re ‘Alright’ and confident they won’t be affected by the recession, with a ‘Lucky’ 4% are who are actually better off. But 17% are ‘Hard Hit’ and have no option but to cut back on spending.

Mark Long, director of BDRC says: “We all know that the economy is tougher and that people are losing their jobs and some businesses are closing. What’s interesting from this research is that the majority of people haven’t as yet been impacted themselves but they are taking measures to control their future discretionary spend which in turn is making the effects of the recession worse.

"Looking at people’s spending plans for the next three months, its clear that some companies are going to have to think hard about how they can convince consumers that their products and services shouldn’t be one of the cautionary economies they make.”

So almost everyone is suffering, and almost everyone is cutting back. That proves that you should not feel ashamed, or feel alone if you are having difficulty in keeping up with your bills. Talk to someone who can help you reassess your finances and can help you seek out some real, constructive alternatives.

SOURCE: BDRC, 25/03/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.