Brits cut spending to cope with recession

| April 8, 2009
Brits cut spending to cope with recession

People in the UK are taking a prudent approach to finances during the recession, with new research showing that three in four households have become stricter with their spending.

The study by Norwich Union revealed that the era of splashing the cash is over, and frugality is now in fashion.

Forty four percent of those said they now set themselves a budget, whilst a third said they have stopped relying on credit.

Over a third (35%), meanwhile, have resolved to pay off their debts, and a fifth of respondents said they have increased the amount they save since the recession began.

Despite the low base rate, 42% are saving in a bank or building society, whilst 28% have invested in an individual savings account (ISA).

Anthony Rafferty, Norwich Union’s head of investments, said: “While economic times are tougher, people will look to make their money work harder, so they are more likely to think about where every penny goes.”

Recent research by Lloyd’s TSB found that 15% of its customers had cancelled their home insurance mid-policy in the last year to save money.

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