Brits 'cutting back on spending'

16 April 2008

British consumers are having to lessen their outgoings as the impact of the credit crunch becomes more defined, it has been revealed.

A survey by Mintel found that Brits are to spend less on items such as holidays (20% of those polled), DIY projects (16%) or savings (11%).

Chief Statistician at Mintel Peter Ayton noted that it is it is now harder for people to obtain finances, possibly in the form of credit cards, because banks have altered their criterion.

"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," he commented.

He added that consumers are now beginning to realise that the money markets are not as straightforward as they once were.

This week Nationwide urged credit card providers to simplify their statements so that consumers know the level of interest they are paying.

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