Talk of an imminent recession across the pond has put the wind up anxious Brits, 17 per cent of whom believe the hype, certain that the UK is in the grip of a recession.
Reports are now showing the full extent of the impact the ongoing turbulence within the financial markets is having on consumers, with confidence levels seeing a pronounced slump.
Research by fool.co.uk has further compounded these statistics, with 20 per cent of respondents admitting that the mere suggestion of a UK recession fills them with fear. Indeed one in 20 said they feared current conditions would continue indefinitely.
A significant majority are planning to play it safe and sit tight in their current property until the market begins to stabilise. Interestingly 13 per cent have had their homes valued to assuage worries over negative equity as a result of slipping house price inflation.
David Kuo, head of personal finance at Fool.co.uk, said: “The term 'credit crunch' has become a part of our everyday vocabulary over the past 8 months.
“In an economic downturn there will be opportunities and threats, and we can take steps to maximise the first and minimise the second."
He advised consumers: “With money at your disposal, you can choose whether to pay down your mortgage or put it into a high-interest savings account - the choice is yours. It won’t make the Credit Crunch go away, but it will make life more bearable until it does.”
