Millions of consumer plan to cut back on spending

 

April 12, 2008

According to a recent report millions of consumers are set to decrease their spending levels over the course of this year, as many struggle with their finances as a result of the ongoing global credit crunch. Over the coming twelve months around 57% of us are expected to slash our spending levels, equating to around one in six people, according to officials from MoneyExpert, which carried out the research.

There are a number of ways in which consumers plan to try and cut back on their spending. Some intend to look at reducing the amount that they spend on basic items such as food, with around 23% of consumers aiming to cut back on the amount that they spend on food. Around 31% of consumers intend to cut back on the amount of money that they spend on clothes, and 32% are looking to cut back on the amount of money spent on going out, socialising, and entertaining.

The data also showed that 6% of consumers had decided not to move house as they had originally planned in order to try and save money, and 12% gad decided not to go head with the purchase of a new car. The effects of the global credit crunch are continuing to take their toll on consumers’ finances, and this has forced many to look at how much they are frittering away each month.

One official from MoneyExpert stated: ‘The credit crunch is moving on from being something that just affects bankers to having real effects on real people in the real economy.’

He also commented on the other effects of the credit crunch, adding that consumers that were struggling with their finances needed to take action: ‘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.’

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