Brits adopt 'head in the sand attitude'

Despite more and more Brits claiming to be worried about their financial situation, many are proving hesitant to change their spending habits.

Research carried out by HSBC revealed that the recession had not changed the way the majority of Brits save, spend or borrow.

With the poor savings interest rates available almost one in five participants are saving less, with 14 per cent saving more, leaving a massive 67 per cent who have not altered their habits with the changing economic situation.

Richard Brown, head of savings for HSBC, said: "With nearly eight in ten Britons worried and insecure regarding the current economic turmoil you would expect them to be spending and borrowing less and saving more."

He added that people either have their "heads in the sand" and do not feel the need to change, or that they have simply decided to try and ride out the recession by refusing to alter their ways.

Research commissioned by the Institute of Financial Planning IFP and National Savings and Investments as part of Financial Planning Week, found that the majority of people would be more likely to put cash aside if accounts were easier to understand and more flexible.
 

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2010-11-29 13:43:00 © Moneyextra.com