9 March 2009
A number of credit card holders are still footing the bill for Christmas, which is leading them to reduce retail spending, it is claimed.
Research from Legal & General shows less than a quarter of the population are in the mood to spend, while 21% are saving to pay off post-Christmas credit card bills.
"We are encouraged to see our MoneyMood survey reflecting a more prudent attitude to credit card debt in these straightened times," says Adrian Boulding, Legal & General's Wealth Policy Director.
He also believes that investing now for a "rainy day" has never been as important as it is now.
Looking to the long term, the study finds 20% of savers are planning on contributing to their pensions, which Legal & General believes is fuelled by short-term fears over job losses.
Axa research recently found a quarter of the population are struggling to keep a handle on finances, with 1.3 million people "entirely out of control".
Louise Bond, uSwitch personal finance manager, comments: "This research shows that it is more important than ever that users have the right credit card for them. It may be that switching the balance saves on the interest that you are paying so make sure you have the right card for your needs."