Credit crunch sharpens its teeth

End users are more wary of getting tied into service contracts as households start to tighten their belts

Watching the pennies: more end users are wary of being tied into expensive service contracts

UK consumers are backing away from signing service contracts as the credit crunch continues to bite, according to research from AOL Broadband.

The survey, carried out for AOL Broadband 'Wireless Flexi' questioned 1,000 adults over the age of 18. It found that 44 per cent of UK end-users are reluctant to tie themselves into service, contracts, but 66 per cent would not mind signing up to a service if it saves them money.

In addition, 47 per cent of respondents say that since the credit crunch their contracts make them feel pinned down, and 79 per cent would prefer a non-contract situation.

David Pagliari, executive director of sales at AOL Broadband said; “We all know that the long term commitment of a mortgage has become more difficult since the credit crunch took hold, but what this research shows is that we are now far more wary about entering into any long term contracts. I think the message is that people now expect the flexibility to choose whether they sign up to a contract for their services or not.”

Other results revealed that 68 per cent of respondents felt tied down by some aspect of their lives. The top three were job (31 per cent), mortgage (27 per cent) and service contracts (21 per cent). The age group that felt the most tied down was the 25-34 year olds (81 per cent)