Pragmatism urged for consumer budgets

British consumers should be pragmatic about the current economic climate, it has been suggested.

According to Emma Walkley, current account manager at Alliance & Leicester, many people are looking for ways in which they can cut back on their expenses.

Among the actions taken by consumers is switching their credit card debt to a zero per cent deal – a step taken by 12 per cent of survey respondents – while a fifth have sought out a new utility provider.

Ms Walkley stated: “As a nation we are fairly financially minded which means that when budgets are stretched we can plan pragmatically how to cope.”

The Alliance & Leicester research also found four in ten Britons budget carefully each month and live within their means.

This is compared to 17 per cent who admitted spending all their money each month, while eight per cent push their debt management limits by going overdrawn every month.

A moneysupermarket.com poll found consumers’ budgets are being stretched to their limits as food and fuel prices continue to rise.