Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK 'hardest hit in Europe' by crunch

Britain is likely to be harder hit by the credit crunch than other European nations, experts have said.According to economists the relatively high levels of exposure to debt among consumers and the sharp decrease in house prices will affect UK consumers markedly, the News of the World reports.The economy's high exposure to the financial services and banking sector - within which the credit crunch originated - was also cited as a reason to be wary about the UK's prospects.Two British banks, Northern Rock and Bradford & Bingley, have already been taken over by the government due to the crunch.Speaking to the newspaper Paul Dales, UK economist at Capital Economics, commented: "Europeans are better placed to weather the storm because consumers have saved more and don't have as much debt."It's going to be very difficult for families. People will have to stop spending and start saving. The era of easy credit has ended."Howard Archer at Capital Economics added: "The relative importance of the financial sector to the UK economy, the high consumer debt and the sharply deteriorating housing market make us particularly exposed."

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details