Consumers agree: We're in a recession

11.11.08
By Sarah Beldo

The vast majority of consumers believe the U.S. is currently in a recession - and many have adjusted their financial habits accordingly, a new poll by Nielsen reveals.

Some 86 percent of respondents acknowledged that the country is in a recession, with more than half saying they see the current economic challenges lasting at least one year.

If you are among those who envision long-term uncertainty, you may have already responded by taking measures to protect your financial future - such as debt consolidation or putting more money into savings.

The findings show that many Americans are also following the save-not-spend line of thought. Around 67 percent said they have been cutting down on gas and electricity usage to save money, while over half have reduced the amount they spend on entertainment and clothing.

Meanwhile, the 4 percent who said they have made no changes whatsoever may be seen as really lucky - or completely reckless.

The Nielsen Company's James Russo said that younger people were among the groups most likely to be worried about their personal finances - but also one of the groups with the highest level of debt.

"Younger consumers grew up in an era of prosperity and have never really known economic challenges to this extent. To them perhaps, the current economic downturn is uncharted territory," he commented.

However, the survey shows signs that people of all ages are taking positive steps. Around 36 percent of respondents said they are using their extra money to pay off debt on credit cards and loans.

If you want to organize your finances but don't know where to start, you may want to order copies of your credit report from the three major reporting bureaus. Take note of the balances, interest rates and monthly amount due for each debt when making your plan.

More Personal Finance Articles | News Home | Discuss in our Forum

Consumers recognize a recession when they see it