Views on the credit crunch

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Has the credit crunch hit consumers - and has it affected our behaviour?

The Today programme visited Watford, to talk to 12 ordinary consumers who pay their mortgages, books holidays, face rising food bills and worry about the cost of living.

They explained to John Humphrys how their behaviour might change - and how they see the next few months unfolding.

Dorothy Thornhill

Elected mayor of Watford, who worked for 25 years teaching children with special needs in local schools.

We're creating a whole generation of young people for whom debt is not only normal but it's a necessity in order to be educated. They're not afraid of debt because it's how you live. As a society we have got to ask ourselves about the wisdom of that.

Jenny Tomley Managing director of John Lewis in Watford. She says there are fewer shoppers in the store, which is having to work hard for the sales.

What I've noticed is most of the people in my age group are encouraging younger people to buy a place. I think that is the right advice; if you are faced with the choice between paying rent and having a mortgage for a house, I think buying a house would be the right choice. Toby Limbrick Director of Elliott Auctions, which conducts property auctions but as an estate agency.

I think in the long term, house prices will start to return and prices will fall in the short term. I think next year will be very difficult for people who are finding it tough to pay mortgages. Betty McBean Unmarried pensioner, with no children, who has saved all her life.

Nobody knew this was going to happen. The business of the pension, for example, you knew you had a pension, now you're not sure. I have saved and I have money that I have invested - a lot of it has gone. Along the years I have helped friends and family - now a lot of that money is just not going to be there anymore. Tim Lamford University lecturer in dance, married with two grown-up children.

Because of working in the arts I've always been reluctant to take on loans, to control spending so that I didn't have to give up what I love doing. We've lived on a relatively low income, but carefully. We've had a mortgage and bought one or two cars but modest ones. We've borrowed a little, not much. I've never been very keen on the idea of borrowing; I've felt uneasy about it. Gavin Farlie Assistant product manager, recently made redundant and lives in rented accommodation with his partner.

I'm in the position I might have to borrow to go on holiday. My best friend of 22 years is getting married and he decided to do it in Vegas. I got made redundant about a month or so ago. I'm reaching the end of whatever reserves of savings, so I might be forced to get a credit card to pay for it while we're out there. Megan Navarro

Mature student studying art and design at Watford College.

We knew we were facing loans when we were going through school. It was normal to think I'll be paying off my student loan, it's part of life. I've so many friends who take on whatever debt is offered them.

Christine Wah Worked in construction until July; now works as a translator.

When July came, all the sales just stopped. Three months ago, my company decided to cut back on regional offices. I made the active step to leave the industry after nine years. Kim Price Owns a small business and is a mother of three children. She is also disabled and uses a wheelchair.

I used to go home every seven or eight months to the United States to visit my family; I've not been home for two years. Where we used to put money in savings - now we're taking money out of savings to survive. Jackie Yardley Teaching assistant and mother of two teenagers.

We have borrowed money for holidays, so that we could go abroad - possibly because it was easy to borrow money, possibly because children are affected by their peers. We wanted to give them the sort of holidays they saw their friends having. Glenn Chapman

Maintenance engineer for parking meters, married with three grown up children.

I borrowed money basically to survive - to pay the bills. You're always borrowing money. You can't save money like you used to be able to. The cost of living, gas, electric, everything is going up. it's making it very hard for the normal working class person. I've been borrowing for five or six years.

Denis Cook Landlord of The Horns, a Watford pub.

As Betty says, there were times when our parents didn't borrow. My mum always used to say: never a borrower or a lender be. Yes, I borrow... but I never exceed what I feel comfortable with. Other generations have been used to borrowing... as life's gone on and the credit companies have been more than liberal with their availability. That's where the problem's arisen and that's what we're paying for now.