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Credit crisis to change spending habits
07/05/2008 09:53:00
Nearly a quarter of consumers said if they were to change their spending habits, they would cut back on purchasing luxury items, according to new research.
Findings from Fairinvestment.co.uk showed that consumers are being forced to tighten their belts due to increases in household bills and mortgage rates brought on by the credit crunch.
Up to 16 per cent of spenders said they would sacrifice going on holiday in a bid to make ends meet, said the firm.
David Doulton, director at Fairinvestment.co.uk, said that the housing market has been the worst hit by the credit crunch with lenders pulling their best deals and mortgages now requiring larger deposits.
"People having to remortgage at the moment will undoubtedly be left with less spare cash at the end of the month," he added.
Up to 13 per cent of respondents in the survey said they would switch energy suppliers to save money and four per cent stated that they would look to change their mobile phone supplier to make savings.
Previously the firm predicted that up to a third of consumers expect to live below the poverty line when they retire.
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