Consumers 'Still Upbeat' Despite Crunch

Having no credit card and other unsecured debts is the top personal finance priority of 45 per cent of people, Zurich said today.

New research from the insurer, carried out by pollsters YouGov, found that many consumers were remaining strikingly upbeat in the current financial climate. Over half (52 per cent) said that they considered property a "good investment", while 44 per cent considered adding to savings an "important priority".

The poll also shows that many consumers are sceptical about the many "doom and gloom" reports which have followed the credit crisis and the general economic downturn in the UK. Despite falling house prices, rising inflation and continuing volatility on the global financial markets, 21 per cent of poll respondents believe that the term "credit crunch" is a "myth created by the media". Moreover, 36 per cent said that they didn't think the crisis would affect them personally.

Tony Solomon, business development director at Zurich, suggested that many of these consumers were misguided when it came to the potential impact of the global financial crisis. "With the credit crunch bringing spiralling living costs, from fuel to food to interest rates, families are seeing their budgets stretched to the limit," he commented. "It is crucial for people to do something positive such as seeking advice and reviewing their finances to ensure their money is working as hard as possible to meet their future needs.

"Additionally, we strongly urge young people to reassess their financial priorities. Saving a small amount, as early as possible, on a regular basis, could make a huge impact on their finances in the future."