Britons ‘cutting back’ on expenditure

Britons are changing their spending habits to help with debt management during the recession, a new survey has suggested.

Research from Abbey Credit Cards has found that UK adults are cutting back on essentials such as food, as well as luxury items.

A study by the firm showed that 69 per cent of Brits are economising by saving £17.10 per week on food, while 46 per cent are scaling back on travel expenditure by £17.27 each week.

And 61 per cent are spending almost £20 less on entertainment, while 51 per cent have cut back £229 from holiday budgets over the duration of the year.

“At a time when people’s finances are becoming ever more stretched, it’s not surprising that Britons are becoming more astute,” commented Callum Gibson, head of credit cards for Abbey.

Meanwhile, consumer affairs minister Gareth Thomas has revealed that credit card companies are to be targeted by new legislation preventing them from raising credit limits unless the customer requests it.

By Jamie Price