Bankwest reveals most people yet to adjust finances to downturn

Significant numbers of people have not adjusted their money management habits since the onset of the financial crisis, Bankwest reveals.

Figures released by the financial services provider - which provides Bankwest credit cards - show that just over half of people are yet to have changed their spending habits in response to the downturn.

This comes despite 52 per cent of respondents claiming they would struggle financially if they were made redundant.

Some 50 per cent, meanwhile, state that a significant rise in household bills would cause them difficulties.

Indeed, such problems could well see such consumers struggle with other financial commitments such as mortgage payments and credit cards.

However, in spite of such concerns 38 per cent of people are not setting any cash aside, while only 23 per cent are managing to put more than ten per cent of their earnings into a savings account each month.

"Most people need to consider taking steps to help insulate themselves from the downturn and one of the most effective and easiest ways is to save more to build a safety buffer," Ian Corfield, chief executive of Bankwest Retail, states.

Such news comes as a recent study by Grey showed 41 per cent of people are looking to reduce how much money goes towards general household expenses, while 86 per cent are actively trying to avoid running up debts.

Written by Joe Letts.