Older consumers who have dealt with a recession in the past will be better-placed to weather the current economic storm, with many already putting debt management plans in to action to help them cope.
More than a third of ‘recession veterans’ are becoming more frugal with their money, compared to just a fifth of ‘recession novices’, says Lloyds TSB.
One in four British adults are facing their first ever recession, amounting to some 13.5 million people who may need debt management advice as their cash flow is squeezed.
The recession veterans feel better prepared for economic difficulties because they have lived through a recession before, with many saying their confidence comes down to their debt management experience.
"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," comments psychologist Corinne Sweet.
The credit crunch has already led to an increase in people turning to debt advice firms and taking out Individual Voluntary Arrangements, OK! magazine reported this week.
It said the recession is encouraging people to think more about debt management and act to reduce their outgoings.