Related Credit Card Article

"Those with recession experience trying to manage without credit cards"

By admin | June 15th, 2009 | General

In the last recession in the early 1990s many unsuspecting adults were caught out, and found themselves racking up serious debt as they relied on finances such as credit cards to get them through the difficult time.

However, it has been revealed that many of those that went through the last recession as adults have learned from the experience and are managing their finances far more effectively and sensibly this time around.

A recent poll was carried out by Lloyds TSB, and this revealed that two thirds of those that went through the last recession as adults were now being far more careful because they had learned valuable lessons from the last recession.

With the current recession still ongoing, 66 percent of ‘recession veterans’ have said that they will not be racking up credit card debt or relying on credit and finance to get through, and will instead stop spending money that they cannot afford and will simply tighten their belts to cope financially.

However, it is estimated that around 28 percent of the nation – those aged from around their mid-thirties downwards – will not have experienced a recession as adults, and it is these people that are likely to now be struggling and could end up accruing huge debts on credit cards as they try and maintain their lifestyle as best they can.

One industry official said: “When times are bad and money is tight, people experience fear and anxiety, making them more conservative and less adventurous and expansive overall. 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.”

Tags: Credit Cards, recession

Related Articles:

• New curriculum will help kids to understand financial management

  As part of a new curriculum children in schools across the UK will be learning about effective financial management and learning how to stay out of debt. Although the adults of today cannot imagine learning this type of topic at school, the levels of consumer debt throughout the UK have been cause for great concern...

• Are you still paying off Christmas debt from last year?

  At this time of year, with Christmas, New Year, and January sales just around the corner, millions of people are getting set to spend a fortune, and inevitably this means that many people will end up with high levels of debt once the festive season has come to an end. For some people this is...

• Budgeting vital for credit card consumers

  Industry officials have been urging consumers that have credit card debts to ensure that they budget effectively for their debt, otherwise they could quickly fall behind and find themselves unable to cope with repayments on what they owe on the credit card. A leading debt advice company in the UK has been offering advice and...

• Consumers continue to make donations on credit cards despite recession

  Whilst the recession has definitely seen a greater number of households aiming to cut back on their expenditure and outgoings in order to weather the financial crisis, recent research has shown that Brits are still being generous when it comes to making donations to charities. It has been revealed that many Brits are still using...

• Credit card customers need to get advice when struggling

  Consumers who are struggling to repay their credit card debt and other debts are being advised to ensure that they seek help from industry professionals to avoid getting into too much of a financial mess. In the current financial climate, and with the recession leading to massive job losses, many people are now struggling to...

Other Recent Articles

Cash back credit cards set to become increasingly rare

The rewards based credit card has become very popular over recent years, particularly amongst those that tend to repay their...

By admin | March 9, 2010 | Read More

Capital One customers hit by huge increases on credit cards

According to recent reports many credit card customers that have cards with Capital One have been stung with huge increases...

By admin | March 5, 2010 | Read More

New high for credit card interest rates

Recently released figures have shown that credit card interest rates in the UK have reached a new high, despite the...

By admin | March 3, 2010 | Read More

Credit card firms reject many proposals

A number of proposals have been put forward recently to try and increase fairness for credit card customers, with the...

By admin | March 1, 2010 | Read More

Credit cards could be the ideal solution for holidaymakers

It has been suggested in a recent report that holidaymakers and those that travel abroad for any other reason could...

By admin | February 25, 2010 | Read More