Millions of Brits ‘putting spending plans on hold’

Millions of British consumers are putting their spending plans on hold as they aim to protect themselves from the financial fallout of the credit crunch, according to a new report.

Figures compiled by Mintel have shown that debt management and personal finance concerns have seen almost three in five consumers make cut backs in recent weeks.

Rising household bills and increases in the cost of living are believed to have played a major part in seeing Britons become more careful with their money and one pound in every four is now believed to be spent on mortgage repayments and interest in the UK.

“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,” said Peter Ayton, Mintel’s chief statistician.

Vince Cable, Liberal Democrat Treasury spokesperson, said recently that the British housing market is heading for a period of “painful correction”.