Consumers cutting back to prevent further debt problems
Consumers cutting back to prevent further debt problems
- Monday, 4 October 2010Some consumers are starting to cut back on their spending to save money in order to prevent getting into further
debt problems.
That is because the conditions are not ideal for saving as interest rates are low so most people are cutting down on eating out and having takeaways.
John Miles, business development director at gocompare.com, stated that the recession has been a wake-up call and some people are cutting back on "borderline luxuries".
He said: "On the one hand, it may have stopped some of the 'frothier' spending, causing people to cut back on the borderline luxuries such as dining out, takeaways or clothes shopping, while for others it has marked the difference between just getting by and really struggling."
Mr Miles added that priorities for households are different and some may be concerned with getting
debt-free while others will want to put money away so that they have something to fall back on.
The price comparison site found that 59 per cent of Brits have cut down on eating out and takeaways, 38 per cent now take a packed lunch to work and 44 per cent are buying fewer clothes.

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