The most recent Financial Activity Bulletin shows that around four million less Britons are planning to save, invest or borrow money over the next half-year than was the case 12 months ago.
And as debt management difficulties impact consumers across the country, the climate of rising interest rates is believed to be behind the reduction in financial activity.
“The latest Financial Activity Survey data reflects the straight-jacket many consumers find themselves in. More people have adopted a cautious approach to personal finances – seemingly preferring to focus on meeting monthly commitments and spending out of income,” said John Gilbert, author of the bulletin.
The Bank of England has opted to raise the cost of borrowing five times since last August, adding to the debt management pressures faced by millions of British consumers.