Hard-hit consumers forced into cut backs
Research from Alliance & Leicester Current Accounts has revealed almost three-quarters of Britons have made some form of financial cutback recently.
In addition to this, a third expect their disposable income to decrease over the coming six months. For the majority, this is due to the rising cost of food, consumer goods, household bills and fuel prices.
Four in 10 Britons are reining in their general day-to-day living costs and 36% are trimming their spending on socialising. Although 28% of Britons admit putting a dent in their savings, less than one in 10 are decreasing their pension or retirement savings. However, a quarter of Britons say they have not made any financial cutbacks recently.
Emma Walkley, current account manager at Alliance & Leicester, said: “It seems many of us are feeling the pinch and looking for ways to cut back. The good news is that people are taking action now and looking at ways of making their money go further rather than burying their heads in the sand.
“As a nation we are fairly financially minded which means that when budgets are stretched we can plan pragmatically how to cope. Our research shows that we are savvy money savers as well as savvy shoppers. Indeed, two-fifths of Brits claim they budget carefully each month and live within their means, and just a quarter spend all their earnings or go into the red.
“However, with many stating that they expect their disposable incomes to reduce, people should be looking at ways in which they can make the most of their money, and that should include looking at getting the most from their current account. If you are earning meagre interest with one of the big-name banks, it is probably time to switch to a better deal.”