One in six adults to curb spending
One in six adults are planning to cut spending this year as worries about the credit crunch hit home in the real economy, research from MoneyExpert.com shows.
Around 57% of adults will cut back over the next 12 months with many planning to reduce spending on basics such as the weekly food shopping bill, the independent financial comparison website says.
The study shows 23% of people intend to reduce their food spending while 31% will spend less on clothes and 32% will reduce expenditure on going out and entertainment
More than one in five will not have an overseas summer holiday this year and another 16% won’t have a summer holiday at all.
And 12% will not buy a car as planned while 6% will not move house as planned.
MoneyExpert.com is urging anyone who is struggling financially to get their borrowing under control and to commit to cutting debts.
Sean Gardner, spokesperson for MoneyExpert.com, said: “The credit crunch is moving on from being something that just affects bankers to having real effects on people in the real economy.
“There is however a risk that we could talk ourselves into a recession by panicking unnecessarily. Certainly anyone who is struggling financially should be taking action but that has always been the case. There are still plenty of good deals out there and people with good credit records still have plenty of choice. There’s no need to panic.”