Online financial advice service MSN Money has suggested that the recent unfavourable change in economic conditions could be making many Britons anxious.

In a recent article, contributor Naomi Caine suggests that beginning with the Northern Rock crisis of last summer, many UK residents are having to come to terms with the fact that loans, credit and mortgages are becoming increasingly hard to come by. It notes that while the government intervened in the crisis and rescued the banks, many consumers still remain concerned about the security of their money as memories of queues of customers demanding withdrawals linger.

That level of anxiety has received further justification by financial advisors discouraging depositors to put more than 35,000 pounds in any one bank just in case it goes bust. Under current laws, such a figure is the upper limit for which people will receive 100 per cent compensation in the event of a lender filing for bankruptcy. Following on from this, many people’s concerns may have been further compounded by the widespread effect of the global credit crunch, the publication suggests.

It notes that while previously banks were happy to offer loans and credit to a wide range of people, the majority have now tightened the requirements for those looking to obtain backing. In addition to a lack of available credit, it also notes that there are now fewer cheap mortgage deals around, while average interest rates have also risen. As a result, people need to be a “near perfect borrower” to get the best deal on a loan or a credit card approved, the resource suggests.

A further worry for many Britons is the increasing difficulty of dealing effectively with debt, it continues. While surmounting the 1.4 trillion pounds national debt seemed manageable when lending was easy, with application criteria tightened, people are now wondering how to tackle their finances when lending options are closed to them. Add to this a rising cost of food and fuel, as well as a fall in house prices, Ms Caine suggests that it can be easy for pessimism to take over.

For those who are struggling with money, she urges consumers to seek professional advice in the form of debt counselling, while for those with more manageable problems, taking a balanced view of their financial situation is said to be the best course of action. Taking out a consolidation loan may also be of assistance to those looking to regain control of their finances.

“Everyone else needs to take a few deep breaths, ignore some of the more alarmist newspaper headlines and have a look at your own budget and your own circumstances. Yes, you might need to cut back a bit, but things are probably not too bad. Your bank is unlikely to collapse, so there’s no need to worry too much about your savings. You also need to build up a stash of cash to prepare for higher mortgage payments or tougher credit terms,” she suggests.

Taking such a course of action may be advisable for the 1.6 million people identified as having had their credit limit reduced in recent months. The recent uSwitch study suggested that a further 1.3 million people had received a bill for a missed repayment.

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