Britons braced for recession

Britons are beginning to feel the pinch of credit woes, with one in six people believing a recession is already upon us.

The recent credit crunch has unnerved many consumers, according to a report by personal finance site Fool.co.uk, with one fifth admitting the mere suggestion of the 'R' word "fills them with fear".

A sense of uncertainty pervades the nation, with the woes in the financial markets and tighter criteria among lenders making some (five per cent) believe that it could even continue indefinitely.

David Kuo, head of personal finance at Fool.co.uk, commented: "The term credit crunch has become a part of our everyday vocabulary over the past eight months, but it’s instructive to see how people feel about a looming recession."

"In an economic downturn there will be opportunities and threats, and we can take steps to maximise the first and minimise the second. And simple measures such as reining in spending will ensure that we have a pot of spare money tucked away to see us through a slump."

The news could get worse today too with borrowers awaiting the decision of the monetary policy committee (MPC) as it prepares to announce whether the base rate will be cut.

Currently the rate stands at 5.00 per cent.

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