More than half of adults are cutting back on spending as they are unsure about their financial future in light of the credit crunch. So the average Brit has had to cut back on many of life’s little pleasures.
According to market analyst Mintel, holidays are the first thing to cancel with 20% of those surveyed saying that they would delay plans. Other cut backs include home improvement plans and saving deposits. These cut backs are most commonly due the rising costs of living, increased home bills and the need to be more careful with their finances.
Chief Statistician Peter Ayton, comments: “In light of the credit crunch, borrowing has now become harder and we are likely to see even more people having to make sacrifices when it comes to their spending in the future.”
Mortgage costs are taking most of the average income with £1 in every £4 of consumer spending, a figure which has risen 213% in the last 10 years. Ayton warns that: “Credit will now be increasingly hard to come by and the mortgage to income ratio will come down with a bump to more realistic levels.”
One Advice understands that more and more people are feeling the pinch of the increased cost in living and, as a result, your debt might become harder to pay. We can help restructure your payments so you make one lower monthly payment to your creditors, with either a debt management plan or an IVA.