Press Release

55% OF CONSUMERS SEE DISPOSABLE INCOME SHRINK BY 20% OR MORE

Latest Equifax survey reveals impact of the recession

www.equifax.co.uk

London 31st March 2009 - The latest survey from leading instant online credit information provider, Equifax, reveals that the recession is taking its toll on consumers, as 55% have seen their disposable income decrease by 20% or more already in 2009, while just 35% were feeling the same financial pinch in 2008. And this pressure on income is having a knock-on effect as far as savings are concerned. The number of men who don't save anything from their monthly income rose from 27% last year to 45% this year, indicating that rising living costs and reduced earnings are hitting consumer's pockets, making it a grim start to the year.

"As job losses continue to hit the headlines and many companies choose to freeze wages, our survey clearly shows the impact it is having on consumers," explains Neil Munroe, External Affairs Director for Equifax. "According to our survey, women are most likely to be feeling the pinch, with 64% of respondents seeing their disposable income decrease by 20%, whereas only 39% said the same in 2008. Meanwhile, 51% of men have seen their disposable income drop by 20% or more in 2009, compared to 39% a year ago."

Not surprisingly, as people are earning less, they are also saving less. Equifax's overall findings reveal that 46% of respondents aren't saving anything from their monthly income in 2009. This is a 14% increase year-on-year. And whilst women are less likely to save than their male counterparts overall, it's the men who have been cutting back on savings the most. In 2008 only 27% of men didn't save anything but today that figure has risen to 45%. This compares with 47% of women who aren't saving in 2009.

But when it comes to short-term debt, consumers are still spending. 40% of respondents admit to having over £5,000 worth of short term debt such as credit cards this year, compared to just 33% in 2008. Once again, women came top of the debt chart, with 45% owing over £5,000 on cards, up from 31% last year. 38% of men owe the same amount, but this is just a 4% increase compared to 2008 which seems to suggest they are less dependent on short-term credit.

Munroe concludes, "Although we have seen a sharp increase in the numbers of men not saving, women seem to be suffering the most in the current economic climate. They are the least likely to save which could be because they have seen a significant drop in their disposable income.

"However, it is worrying that the number of women owing over £5,000 in our survey increased by 14% in the last year. This combination of mounting debt and reduced income is a recipe for disaster. We advise consumers to take stock of the amount of debt they take on and think about the long-term implications. By reassessing their credit agreements and taking control of their finances, this could go a long way towards ensuring they make it through the current financial difficulties."

The new Equifax Credit Report, with the facility to access credit information for the first 30 days free, can give consumers a valuable insight into their credit status. Accessible simply by logging onto www.equifax.co.uk it is designed to help individuals understand their credit file and see what lenders see to assess new credit applications. It also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life's challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

Equifax's Savings and Debts Key Figures 2009

	Men	Women	Overall
Disposable income decreased by 20% or more	51%	64%	55%
Over £5,000 worth of short-term debt i.e. credit cards	38%	45%	40%
Respondents who don't save anything from their monthly income	45%	47%	48%

Equifax's Savings and Debts Key Figures 2008

	Men	Women	Overall
Disposable income decreased by 20% or more	31%	39%	35%
Over £5,000 worth of short-term debt i.e. credit cards	34%	31%	33%
Respondents who don't save anything from their monthly income	27%	40%	32%

Findings taken from Equifax customer surveys in March 2009 and January 2008 from a sample base of 545 and 646 respectively

ENDS

For further press information please contact: Elinor Puzey, Louise Fowler, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: elinor@harrisonsadler.com