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Brits Respond to Money Worries with Economy Drive

Brits Respond to Money Worries with Economy Drive Finance company AXA warned that 70 per cent of British households are planning an economy drive this year due to rising bills and the effects of the global credit crunch.

A survey by the company found that some are going to cut back on their social lives, while many others plan to make smaller contributions to their savings or make smaller pension payments.

The poll found that 19 per cent would be going out with friends less and 37 per cent were determined to eat out less often, while 8 per cent were considering letting their insurance cover lapse.

One in six households plan to stop saving altogether, while also reducing their pension contributions. Some 11 per cent of respondents revealed that they had taken on extra work to bring home the bacon.

While many cited ongoing debt repayments as a strain on household finances, others said that the high level of house prices was a problem.


“It's no wonder that households with above-average incomes are struggling to cope,” said AXA spokesman Steve Folkard.

"A typical family in Middle Britain may have a higher than average income, but millions are weighed down by high lifestyle costs and face tough choices as the strain on their finances takes its toll.”

However, Mr Folkard stressed that, "one of the biggest issues is that many seemingly well-off households lack the motivation to tackle their problems.”

"We've had it easy for so long and been happily spending without thinking of the consequences, that now people aren't sure what to do."

The AXA survey was carried out in March by pollsters YouGov, which questioned over 2,000 people.

Debt Management News posted on 21 April 2008

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