Spending levels to be slashed by many
May 12, 2008
According to a recent report many consumers across the UK are set to slash their spending levels, as many struggle to try and cope with higher outgoings and the associated financial strains that have become so commonplace over recent months. The difficult financial conditions that have resulted from the ongoing global credit crunch have impacted on many households, and has resulted in millions of us deciding to try and cut back on spending wherever possible.
The survey carried out by MoneyExpert shows that around 57% of consumers intend to cut back on their outgoings by reducing spending levels in a variety of different areas. Many are looking to reduce the amount that they spend on basics, with 23% of consumers stating that they will cut back on the amount of money that they spend on food. A further 31% of consumers said that they would reduce the amount of money that they spend on clothes, and around 32% will cut back on the money that they spend on going out and entertainment.
One industry official 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 did add, however, that some people could be panicking unnecessarily, stating: ‘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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