Cutting down on expenditure

According to the study carried out by R3, the recent recession and financial instability in the UK have resulted in consumers getting preoccupied with their personal debt. Gradually, they are starting to learn how to save more and spend less, even if it takes them to change their lifestyle a bit.

Over 80% of UK citizens say they have already changed their spending habits over the period of the last twelve months, because of the economic situation in the country, the survey revealed.

The insolvency trade body claim that more than 50% of people living in the UK has reduced spending on such products as clothing and trifles like DVD’s, in order to save some money and do something about their debts.

Many consumers are now shopping for items in the places they didn’t visit before, while other people now refuse from buying expensive branded items when they are shopping for food and clothes.

The survey has also shown that a lot of people are now less willing to take out a new personal loan or and try to use their credit card as rarely as possible in order to reduce their debts. In the meantime, many people are trying to pay off their loans and credit cards ahead of time to reduce their spending.

Frances Coulson of R3 commented that it was great news that many people were actively trying to cut down on their spending because doing so would improve their financial situation. However, he added that budgeting was still quite low down on people’s agenda.
 


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