Credit crunch worries begin to bite

One fifth of people are now actively cutting back on spending because of worries about their monthly budgeting.

Two out of five people, however, were already attempting to be frugal and so are not able to find new ways to economise, whilst the remaining two out of five people are continuing to spend without worrying about the gloomy economic forecasts affecting their behaviour.

Paul Whitlock, head of savings at Bradford & Bingley, comments: "It appears that the credit crunch is now having a tangible impact on consumer behaviour.

"There are still a number though, particularly among the under 25s, who are continuing to bury their heads in the sand and are not being deterred by the prospect of higher borrowing costs and a tougher credit environment. It's crucial now that they start heeding the warnings as the credit crunch is likely to bite well into next year."

December 13^th 2007

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