Tuesday, May 12, 2009
According to Abbey Credit Cards, Brits are making their money go further thanks to a more cautious approach to spending.
In fact, the average UK salary of £25,100 is being stretched by 7 percent, which equates to an average annual saving of £1,746. Penny-wise activities, such as shopping around, are resulting in savings in a multitude of areas. 69 percent of UK adults have seen a £17.10 reduction in their weekly food bill; 46 percent have saved £17.27 per week on their travel expenses; 61 percent have made a weekly entertainment saving of £19.47; 51 percent have experienced an annual saving of £229 on holidays; and 35 percent have saved £139 on financial products during the course of the year.
This thrifty approach to spending looks set to stay, judging by the response that many Brits are intending to cut back further still this year. Specifically, 55 percent intend to save even more on their food bills; 41 percent are planning to further reduce their travel expenses; 48 percent are aiming to shell out less for entertainment; 47 percent are looking to make holiday savings; and 30 percent are resolving to save more on financial products this year.
The methods behind the savings are varied. The findings conclude that impulsive spending is becoming less common, with 37 percent making price comparisons in at least five shops prior to making a purchase. 68 percent were also found to postpone buying an item until it has gone on sale. Abbey Credit Cards also point out that ‘shabby chic' is making a come back with 31 percent of Brits being willing to visit car boot sales in an effort to obtain a bargain. 40 percent also choose to don clothes bought from charity shops.
The general British feeling of unease where haggling is concerned would also appear to be less apparent today, with four in ten people being prepared to do just that. One in eight respondents claimed that they are no longer prepared to pay the ticket price for non-food items.
Head of Credit Cards at Abbey, Callum Gibson, commented: "At a time when people's finances are becoming ever more stretched, it's not surprising that Britons are becoming more astute about how they shop and are prepared to shop around and economise to make their money go further. But savvy spending isn't the only way that Britons can make key savings. Recent research by Abbey Credit Cards found that by transferring to a 0 percent deal, Britons with an outstanding credit card balance could save an average of £443 a year, a huge saving in today's difficult economic climate."
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Homeowners that are finding their finances tight may wish to consider taking out a secured loan. This finance option could prove to be an ideal solution, particularly for those that are currently juggling multiple repayments on credit cards each month. A secured loan could be used to
consolidate such debts into one manageable, monthly repayment. This could potentially be lower than total existing monthly outgoings, thus freeing up useful money used elsewhere. Secured loans are one of many options to consolidate debt, but it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
