People ‘need to make financial cut backs’

Consumers have been urged to be “savvy” with their money in order to minimise the financial outlay over Christmas.

The advice comes from Michelle Slade of Moneyfacts, who noted that cutting down on unnecessary expenditure – for example forgoing buying a coffee on the way to work – can help people’s money go further in the credit crunch.

“[People] just have to cut back generally,” she explained, adding that buying cheaper brands rather than “big name” products and walking instead of driving to work can both help bring down bills.

And those who are struggling financially this Christmas have been advised by Ms Slade to start saving early for next year’s festive season, as this can help reduce the expense come December.

Those thinking of implementing a debt management plan for 2009 may wish to take Ms Slade’s advice on board.

A recent report by Abbey found that disposable income has fallen 29 per cent over the last two years, meaning 64 per cent of Britons have to make sacrifices in order to survive until pay day.

By Tom Musk