Brits ‘cut back’ due to credit crunch

Brits are taking action agains the impact of the credit crunch rather than getting into further debt, it has been revealed.

The Fair Investment Company has revealed that three per cent of people plan to increase their overdrafts this year and one per cent intend to get another credit card.

However, 23 per cent said they will cut back on their luxuries and 16 per cent are going to go without a holiday this year.

Other methods of coping with the tightening economy include switching energy suppliers (13 per cent) and changing mobile phone contracts (four per cent).

The firm’s director David Doulton said: “Those who are finding that money is tighter are taking action as opposed to getting into debt.”

Nearly a fifth (17 per cent) claimed they were not making any changes to their spending. Mr Doulton explained that these people must either be on a fixed-rate mortgage deal or not have a mortgage at all.

Last week it was revealed that 57 per cent of Brits are reducing their spending on holiday this year, according to FairFX.com.

© Adfero Ltd

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