The collapse of Lehmans was by no means the start of the global economic problems. After all, it all began with the sub-prime mortgage crisis in summer 2007 and, believe it or not, it's the second anniversary of the run on Northern Rock. However, Lehman Brothers' failure took the credit crunch on to another dimension and it signified its transition in to a full-scale financial crisis.
What's happened over the past 12 months has been quite incredible, not only from a business perspective but also because of the impact it's had on consumers. Watch our video 'Financial crisis one year on'.
The British banking system was brought to the verge of collapse; nearly half a million UK savers were affected by the downfall of the Icelandic banks; central banks around the world slashed interest rates and, here in Britain, the base rate plummeted from 5% to 0.50% between October and March.
We've also seen the economy go into recession, unemployment rise and house prices fall. It's been a tough time for many households.
About turn for savers
Unsurprisingly, these events rocked consumer confidence. At the back end of last year we saw a flight to safety among savers - many were prepared to sacrifice rate in favour of increased security. As such, providers such as National Savings & Investments and Northern Rock, which are Government-owned, were among the main beneficiaries. However, more recently, with the base rate at 0.50% and many savings accounts paying even less than that, we've seen a shift back in favour of rate.
Kevin Mountford, head of banking at moneysupermarket.com, said: "Following the collapse of the Icelandic banks, savers have seen that the Financial Services Compensation Scheme works so they are more confident about the security of their money. And with the base rate at just half a percent, many are now looking to get the best return possible on their money."
For more on the latest savings deals, read our article 'What should savers do now?'.
Borrowers repay debt
Borrowers have felt the brunt of the credit crunch and subsequent financial crisis. The shortage of funding has left many people struggling to get mortgages and mortgage rates haven't fallen in line with the Bank of England base rate.
Loans and credit cards are also harder to come by. Banks and building societies are more cautious about who they will lend to, and loan and credit card rates have increased rather than fallen.
However, spiralling levels of consumer debt were a major concern before the onset of the credit crunch and over-indebtedness has exacerbated the problems faced by many households. The recession, rising unemployment and falling house prices have brought misery to millions.
It has also been a warning call for many of those who do have large debts. Latest figures from the Bank of England revealed that personal debt has fallen for the first time since records began in 1993.
Peter Harrison, credit card expert at moneysupermarket.com, said: "UK consumers are definitely being savvier with their borrowing and many are using the low rate environment to overpay on their mortgage borrowing and reduce their overall debts."
We're not out of the woods yet
Financial institutions certainly seem more stable than this time last year and recent economic data suggests we could be past the worst. However, economists are also warning against complacency saying that it is still too early to call an end to the recession.
The message for consumers therefore is to proceed with caution. Savers can take advantage of some great savings rates as banks and building societies continue to seek retail funds to plug the funding gap caused by the credit crunch. There are also signs of tentative improvements in the mortgage markets. The best deals are still reserved for those with large deposits but if the recent data is correct and house prices have started to rise again slightly, it will help those who have seen the equity stakes in their home shrink.
For more information on the latest on the mortgage market, read Laura Howard's article 'Interest rates stick; mortgage rates twist'.
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