Lloyds TSB have released research revealing the plight of 13.5 million recession novices, as the effects of the credit crunch continue to shine.
According to the study, this will be the first recession that one in four of British adults will have experienced in their adult life. These recession novices are far more optimistic and less prepared to change their lifestyles, in comparison to recession veterans.
Many recession veterans are taking tighter control over their debt management, with 66% believing that they will survive the credit crunch as they do not reply on credit. Yet recession novices are less prepared to take steps to secure their financial future with only a fifth admitting that they are now more frugal.
Corinne Sweet, psychologist and author commented: “Recession novices will be feeling the greatest shock, and worrying about how to maintain their lifestyles while paying off debts, while those that have lived through it before will probably cope better, reverting to old methods of survival.”