Consumer confidence knocked by Northern Rock crisis

Consumer confidence knocked by Northern Rock crisis

A quarter of all UK consumers have become more concerned about their own financial situation in the aftermath of the Northern Rock crisis, according to independent research commissioned by credit reference agency Callcredit (1).

The over 55s are the most concerned group with 31pc of those surveyed increasingly worried about their financial health. Conversely, over half (53pc) of 18 – 24 year olds said that they were no more concerned now than prior to Northern Rock’s troubles.

Owen Roberts, Head of Callcredit Consumer comments: “The Northern Rock crisis and the credit crunch have clearly shaken consumer confidence, particularly among the over 55s. It is understandable that this group, who are more likely to have spent time building up a nest egg, would be the most concerned as it was a panic over savings that was hitting the headlines. Interestingly few people aged 18 – 24 said that their financial concerns have increased which may be symptomatic of these people relying more on borrowing than on savings.

“The most important thing for people to do is to take control of their finances. We urge consumers not to panic but instead to take a good look at their current financial status by reviewing their credit report”.

London-based consumers – who make up the most overindebted group in the UK (2) – stated that their views on their financial situation have changed the most dramatically since the Northern Rock situation came to light with 31pc stating that they are more concerned now than before. This is almost double the number of Scots, who appear the least perturbed group with only 16pc saying that their views have been negatively affected over the past few weeks.

ENDS

Sources:

1 – Results of independent study carried out by YouGov on behalf of Callcredit

2 – According to Callcredit research conducted in September 2007

Key statistics:

29pc of consumers in the North West are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

23pc of consumers in Yorkshire and the Humber are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

26pc of consumers in the East Midlands are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

29pc of consumers in the West Midlands are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

29pc of consumers in the East of England are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

31pc of consumers in London are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

24pc of consumers in the South East are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

23pc of consumers in the South West are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

19pc of consumers in Wales are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

16pc of consumers in Scotland are more concerned about their own financial situation in the aftermath of the Northern Rock crisis

About the research:

Research was conducted online by YouGov between 2007 and the total sample size was 2,105 adults.

About Callcredit:

* Callcredit (www.callcredit.co.uk) is the UK’s most innovative, state-of-the art credit reference agency, with an extensive range of information and value added services for businesses and individuals.

* MyCallcredit is the consumer arm of credit reference agency Callcredit and provides consumers with online access to the details of their credit file at http://www.mycallcredit.com/

* Callcredit has harnessed state-of-the-art information technology with an unrivalled knowledge of the industry’s needs to develop a range of innovative information solutions. Solutions that are enabling major lenders and a host of other blue chip companies to address regulatory requirements, make better credit decisions, target new customers more effectively and manage existing customers more profitably.

* Callcredit forms part of the Skipton Information Group, and is one of five core businesses along with database management company EuroDirect, market analysis firm GMAP Consulting, online payment service provider, Legatio and DecisionMetrics, specialists in the development and implementation of scorecards and affordability assessment.

Sophie Smith

Senior Account Executive

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