Consumers Taking On Austerity Measures July 30th, 2010
Since the recent election and emergency budget, the new coalition government has been warning consumers about the prospect of tough times ahead, describing the situation as a new age of austerity and that people should take steps to reduce their spending by budgeting more carefully.
New research from the Spanish bank Santander, has found that around 80 per cent of people in the UK are already taking on board the message and are making efforts to reduce their monthly outgoings by making slight changes in their lifestyle.
The research found that more than half of consumers are now shopping for their groceries more carefully, either by reducing what they buy, or by switching to a cheaper supermarket in order to save money.
Many individuals are also cutting down on luxury items, such as eating out on a regular basis and keeping their old car for longer, rather than taking out a personal loan in order to but a new one.
Other cost cutting measures include shopping around for cheaper utilities, such as gas and electric, as well as shopping around for a cheap loan in order to repay more expensive unsecured loans and credit cards.
Many individuals with existing loans and credit cards are making extra effort to repay their debts earlier, by making overpayments whilst interest rates are relatively cheap, in order to free up extra disposable income in the future.
Helen Bierton of Santander said “The coalition government has warned of the impending “age of austerity” for a while now, but most of the British population are already taking measures to cut down on their daily expenditure.”
“Many frugal Brits are cutting out luxuries, such as buying their daily coffee form the coffee shop, or using the car wash, but the best way of getting more for your money is by shopping around and moving to providers of goods and services that offer better value.”