Credit crunch: Media myth?

The credit crunch is a myth created by the media, according to a fifth (21 per cent) of people.

Insurer Zurich found many are less concerned about the economic climate than gloomy headlines would suggest, with more than a third (36 per cent) of consumers believing the credit crunch will not affect them.

Despite falling house prices, 52 per cent still consider property to be a good investment, while less than a third (29 per cent) of consumers have reviewed their finances in light of the credit crunch.

Tony Solomon, business development director for Zurich UK Life said: "It is worrying to find that less than a third of people have reviewed their finances in light of the credit crunch.

"With the credit crunch bringing spiralling living costs, from fuel to food to interest rates, families are seeing their budgets stretched to the limit.

"It is crucial for people to do something positive such as seeking advice and reviewing their finances to ensure their money is working as hard as possible to meet their future needs."

In addition, the survey found a higher percentage of women (48 per cent), compared to men (38 per cent), state that savings is a very important priority; whilst men score a higher percentage (45 per cent) than women (36 per cent) for saving in a pension plan.

Unsurprisingly, the survey revealed that the highest priority for 18 to 24 year olds is to own a car.

However, the second highest priority for this group is to be debt-free, with 38 per cent stating that having no credit cards or overdrafts is their top priority.

For those approaching mid life (45 to 54 years old) their main priority is to own their own home, followed by owning a car and then having a pension plan. Those in their later years (aged 55 and over) who were interviewed responded that their main priority is owning their own home at 70 per cent and being debt free is tied as their second highest priority along with having savings.

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