Up to three quarters of households say they are planning to cut their spending this year, according to a survey.
The research from financial provider Axa said that some blamed the burden of high house prices.
The credit crunch and a lack of money left over each month means some will cut savings or their pension payments, while others say they will go out less.
The research found 70% of households said they plan to cut their spending this year.
Also, 37% say they will be eating out less, with 19% not socialising as much, and 8% were thinking about not renewing their insurance cover.
Are you being affected by the credit crunch? Tell us how its affecting your life by posting your comments below.
8 Comments
I AGREE i am also cutting back on spending to enable me to pay more to my cards to get the balance down
As the owner of a bed shop, the crunch is hitting me hard. People are too scared to spend what money they have, as the cost of living rises week by week. Everyone I talk to, accross all industries, seem to be struggling at the minute. If the government doesn’t act soon, then a large number of small businesses are likely to shut down as a consequence.
The credit crunch is merely the financial authorities at last realising that interest rates do not control money supply. They are implementing actual controls and the result is a sudden and dramatic loss of availability.
Clearly the most visible effect is on mortgages as the cheap introductory rates disappear ending the unjust situation where loyal customers subsidised new (and generally somewhat shaky) business generated by bonus hungry morally bereft salespeople.
The recent borrowing figures simply show people have moved some of their borrowing into the cheaper facilities of overdrafts while the increase in credit card figures can be put down to the banks ramping up interest rates on those facilities.
An adjustment has been made. It is up to the Bank of England now to adjust the base rate to a more realistic level. The present rate which massively exceeds the rate set by any other equivalent institution is harming industry and other commerce.
To complete the circle exchange controls need to be re-introduced. Admitting errors is not a characteristive of the “official” or “bureaucrat”. This will therefore be achieved by some form of duplicity. Exchange controls will, however, be there.
very simple its time for a change! lets vote them out!
4 Gareth
I’d agree with you mate, but there’s no-one worth voting for. I think we need a complete overhaul of the system as the current one doesn’t work. No matter which government is in power, they all let you down on there promises. The government officials themselves always benefit, yet I always seem to lose out.
Who put the cost of Housing up?
The Estate agents!!
Who put the interest rate up?
The bank of England!!
Who benefits? The fat Cats!!
Who allowed it?
The government!! Use Your Vote!
Its dreadful in 10 years my council tax in Stafford has gone from £52 a month to a request for …….£106.00.
Thats a big percentage increase.My wages havent gone up to match the labours thieving hands!
Hands off our money….stop the scroungers in this country and make people feel proud to be British again!
Go to YouTube and search for ‘zeitgeist’. That is where you will find your answer.