Press Release

WHO DO YOU TURN TO WHEN IN FINANCIAL DIFFICULTY?

Latest Equifax survey reveals that debt is no longer a taboo subject - and family and friends are lending a helping hand to those facing financial difficulty

London, 31st July 2009 - According to the latest survey* from leading instant online credit information provider, Equifax, nearly 1 in 3 consumers have turned to parents or other family members for help with debt repayments or finances. And more than half of consumers will freely discuss their financial situation with family. This move to turn to those close to them for financial assistance seems to suggest a desire not to commit to further formal credit.

"With 45% of respondents saying that their income has been affected by the recession, it is clear that financial pressures are really hitting families and individuals hard", confirmed Neil Munroe, External Affairs Director, Equifax. "What our latest survey tells us is that people are becoming more ingenious when it comes to coping with less income whilst still managing their financial commitments.

"The fact that 51% said they would freely discuss their financial situation with family members seems to suggest that the old taboos associated with debt are disappearing. However, 36% of our respondents did say that they feel there is a stigma attached to being in debt. But where discussions about money used to be kept strictly private, it seems that this is less the case now with 31% saying they would discuss their financial situation with friends and 15% with work colleagues.

"An imaginative approach to making the best of the monthly income also seems to be developing amongst British families"

47% said they will barter to get the best deal on high priced items with 21% bartering for the best price on most things they buy
A staggering 60% said they have changed their shopping habits in the last 6 months to make the most of dwindling finances
Of these 40% have switched to a lower priced supermarket; 52% choose more own-brand products and nearly a third (30%) will shop around various different supermarkets each week to find the best deals.

"Cut backs are also making consumers think harder about the type of produce they buy with 13% stopping buying organic products and 63% buying fewer non-essential foods", continued Neil Munroe. "And, whilst a relatively small number at 8%, some are taking a second job to help make ends meet.

"Nearly 1 in 4 of respondents to our survey said that their level of debt has increased since the start of the recession. For many this could be the knock-on effect of increased interest rates on existing credit or a loss of income making it harder to stay on top of existing commitments.

"Now, more than ever, therefore it is crucial for consumers to ensure they have the complete picture of their financial commitments. And as soon as they can see that they might be getting into financial difficulty because of a loss of income they should talk to each of their lenders to make them aware of the situation. Lenders have a clear commitment to help their customers as much as possible - but they need to know the facts to provide the best support and advice."

For individuals and families facing financial difficulties, Equifax is working with the debt charities to provide consumers with access to their statutory credit report free of charge. They can do this using a request form and a supporting letter from the debt charity. They will then receive their statutory credit report in the post within 7 days of the request.

ENDS

*The Equifax Debt Attitudes Survey, conducted May 2009 amongst Equifax customers, received 1704 responses

Debt Charity Contact Details
CCCS - 0800 138 1111
National Debtline - 0808 808 4000
Citizens Advice Bureau (CAB) - www.citizensadvice.org.uk

For further press information please contact: Elinor Puzey, Louise Fowler, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: elinor@harrisonsadler.com