Has the credit crunch put your life on hold?

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This time last year, you might have been planning a major change in your life. Maybe you wanted to start a family, move home or find a new job - but today, you've almost certainly decided not to go ahead, according to research from CreditExpert.

The credit monitoring service discovered that 75 per cent of us – the equivalent of 36 million people – have either postponed or cancelled our most important plans and 55 per cent of us feel anxious about ever reaching our goals in life. In fact, every person in the representative sample of more than 2,000 UK adults intends to defer at least one major item of expenditure over the next 12 months.

Those in the prime of their lives are most likely to postpone key events – 83 per cent of the 18-34 age group are putting important plans on the back burner. The older generation are more resilient, with 58 per cent deferring cherished ambitions.

What we won't do…

The economic downturn means that 50 per cent of people have given up thoughts of a new car in the next 12 months, 30 per cent won’t be buying a property and 27 per cent have decided against moving jobs. Youngsters are also affected – 81 per cent are delaying key plans, such as studying.

Sadly, the impact has been emotional too. Almost a quarter of 25-34-year-olds are putting off trying for a baby, while 21 per cent of 18-24s and 12 per cent of 25-34s are deferring their weddings and 41 per cent say that the need to postpone their plans has put a strain on relationships with partners, family, friends or colleagues.

…and why

The key factors behind this mass abandonment of plans include:
• Affordability – 47 per cent of people say they simply can’t afford the extra costs
• Caution triggered by the economic situation, cited by 62 per cent
• A perceived lack of available credit – nine per cent are concerned that they will not get a loan or other form of credit

These circumstances mean that 76 per cent of us feel that life is being dictated by factors beyond our control and 77 per cent of us are uncertain about the future.

Times are tough for many of us at the moment but you don't necessarily have to put your life on hold, says CreditExpert managing director Jim Hodgkins. If you manage your finances actively, budget carefully and keep a close watch on your credit report, you can put yourself in the best possible position if you need to borrow in order to fund the life you want to lead.

Your credit report lists credit accounts, such as cards and loans, along with your repayment history, so it shows at a glance what credit you owe and whether you're managing to make repayments on time and in full – or whether you're getting into trouble.

You can see your Experian credit report for free with a trial of CreditExpert.