As the credit crunch continues to bite, a new study from Lloyds TSB has revealed that more than 13.5 million Brits are living through their first recession. But are these millions of recession novices reacting differently to the current climate than recession veterans?

For one in four British adults, the current economic downturn is their first experience of recession during their adult life, according to figures released today by Lloyds TSB.

Inexperience of economic hardship breeds optimism and while recession “veterans” feel prepared for the downturn through good management of their finances, novices appear to be less prepared to make changes to their lifestyle to accommodate the current climate.

This is reflected by the belief of one in 10 first-timers who responded to the Lloyds survey that the recession will end in 2009, compared to 37% of veterans who believe that it will continue until at least 2011, perhaps longer.

Recession fears
The research also revealed that far more recession veterans make a conscious effort to keep abreast of the news than novices, and are more concerned about wider economic issues such as lower interest rates, rising crime and a weakening economy. Recession newbies were more worried about having less money to spend and not being able to afford to pay off existing debts.

It’s no wonder then, that regardless of experience more than 20% of all of those surveyed said the current economic climate had led them to suffer some form of “recession depression”, with symptoms ranging from sleepless nights worrying about their finances, to staying at home more in a bid to save cash.

Survival tactics
Managing your finances in a period of economic uncertainty is always going to be challenging, says Graham Lindsay, managing director of customer experience at Lloyds TSB.

He continues: “If you have financial worries, facing them head on is always the best policy and having a plan of action puts you in control and helps put your mind at ease.”

And with experience on their side, the recession veterans appear to be taking a sensible approach to the current climate by adopting tried and tested methods of cutting down their expenses. A quarter of veterans say they would be prepared to cut back on luxury compared to a fifth of newbies.