Who is facing the credit crunch?

Confidence in the UK’s economy is at an all time low. The housing markets are plummeting and food prices are rising. But who is this financial crisis affecting the most?

Elizabeth Bellamy Bank employee Julie Osbourne, 49 from Poole said ‘it is the twenty-fives and over that will suffer the most from the credit crunch. Anyone running a home.’ Elizabeth Bellamy, a forty-two year old shop assistant from Amesbury Park agreed. ‘Anyone who’s not in full time education, anyone who’s earning money. Parents the most.'

But student Esmerelda Koletski, 23 from Bournemouth, disagreed. ‘I think students will be the worst off. The credit crunch will make it tough for students to pay off their loans.’

Paul Wilkinson, 45, a contractor from London, offered an alternative view – ‘those with poor credit rates will suffer most as banks won’t be giving them loans or overdrafts at all.’

IT Technician Stephen Moore, 37 from Winton argues ‘people with outstanding debts are hit hard. The interest rates will send their debts soaring up.’

Frankie Stevenson, 18, a student from Bournemouth, and Alex Penge, also 18, a business student from South London, agreed that families with more responsibilities will feel the crunch. ‘They have more to pay, like mortgages,’ said Mr Penge. ‘Middle aged people are definitely worst off,’ agreed Ms Stevenson, ‘they have mortgages and bills to pay.’

Lynsey Lecocq, 20 from Wallisdown, offerd a different opinion. ‘It’s worst for first time buyers,’ she said. ‘The banks are refusing to give people mortgages; it’s so hard for people to get on the property ladder.’ Katie Moses, 18, a marketing student from Boscombe argued, ‘twenty-fives to thirty fives are more likely to have children and cars – bills that add up and cost a lot of money.’

But student Hum Quareshi, 26 from Charminster,
offerd a more rounded view. ‘I think it affects all age groups differently,’ he explained.. ‘Students will be denied overdrafts, professionals in the city can’t have their lavish lifestyles anymore. Social attitudes are going to change – with houses being repossessed, people are going to be stressed and unhappy, business regulations are going to get tougher; and this could cause conflict.’