Still more reluctant
It’s more than six years since the global financial crisis started – but the financial shock is still having an impact on attitudes to money.
In addition to this eZonomics online poll, the ING International Survey on Savings 2014 also asked the same question about willingness to borrow. It found that of almost 13,000 people in 13 countries in Europe, 69% were more reluctant to borrow since the crisis. People in Romania, Czech Republic and Spain were particularly wary with more than three-in-four agreeing they were more reluctant to borrow.
The “scars” remain
As economist and writer Chris Dillow blogged for eZonomics, attitudes to risk are influenced by a wide range of factors.
Dillow wrote, for example, that a study found former soldiers were less likely to take financial risks and that different research showed that people who see shares do badly in their formative years are less likely to hold them years later.
Known as scarring, the impacts of financial shocks can last for many years. It appears the global financial crisis is no exception.
“Stress test” your debt
Despite this increased reluctance, responsible borrowing will still be a routine part of managing money for many people. Borrowing enables people to buy houses, expand businesses and more. One way to reduce concerns about borrowing too much (and causing problems around repayment) is a personal stress test.
As the video Home buying tips says, a stress test involves evaluating if you will still be able to stay afloat if interest rates go up, you lose income or personal circumstances change in other ways.
This article is related to the ING International Survey: