One in three ‘planning personal finance overhaul’

Close to one in three consumers from around the country are planning a complete overhaul of their personal finances, according to a recent study. Figures compiled by Friends Provident have shown that almost 40 per cent of Britons are worried about the impact of the so-called credit crunch and millions are looking to reassess how they mange their money as a result.

Among those planning a financial makeover, around two-thirds intend to start adding to their savings more regularly, while 13 per cent suggested that they will curb their spending by no longer using their credit cards. Furthermore, as many as 7.5 million UK consumers are likely to try and borrow money from friends and family as a result of the personal finance problems they have begun to face in recent months.

James Ward, director of marketing at Friends Provident, commented: “The credit crunch is already impacting on consumers, both financially and psychologically. “The trick is to harness this heightened awareness and to do something positive.” Last week, the Department for Work and Pensions urged young Britons to contribute more often to their retirement savings funds.