Belts tighten across Britain to combat rising inflation

A staggering 86 per cent of Brits are taking some form of measure to combat rising inflation, according to research by Abbey Mortgages. Almost half of us (44 per cent) are planning to raise extra funds from sources outside our regular employment and a further 84 per cent are planning to cut back on non-essentials in order to save money and cover essential bills such as mortgages and utility bills.

Thirty per cent of Brits (13.6 million people) are planning to sell some form of possession to help combat the rising cost of living, 1.3 million of which are planning to sell their car as a result of rising fuel costs. Twelve per cent are planning to take on a second job and 1.9 million Brits (4 per cent) are even thinking about volunteering as a medical research subject. A further three per cent (1.3 million) are considering pawning a possession.

Phil Cliff, Director of Abbey Mortgages, commented: "With over eighty per cent of Brits taking measures to save money and earn extra cash, it's clear that belts are tightening all across Britain. Careful financial planning and budgeting can help combat the effects of rising inflation, and everyone should ensure that they are shopping around for the best financial products."

Abbey Mortgages' research shows that there is also considerable evidence of 'tightening belts' across the country as 84 per cent of Brits plan to cut back on non-essentials and shop smarter in order to save money. Almost two thirds (61 per cent) of us are already taking extra care to make the most of offers and discounts when shopping, such as two for one deals, discount vouchers etc.

Changes already made

Over half (52 per cent) of Brits are buying fewer non-essential items such as CDs, DVDs and clothes, 37 per cent are eating out less, 29 per cent are using their car less and 21 per cent are changing their daily work eating habits and taking a packed lunch into work as often as possible.

Fifty-three per cent of all Brits have also changed their holiday plans this year in response to the rising inflation and the strength of the Euro. A quarter (25 per cent) of us have decided not to take a holiday this year in order to save money and 13 per cent of Brits are holidaying in the UK this year instead of going abroad. A further 10 per cent have reduced their holiday budget this year. 2.2 million people (5 per cent) have chosen a holiday destination outside Europe because of the strength of the Euro against the Pound.

Phil Cliff added; "Today, Abbey is reducing the rate on all its two and three year fixed rate mortgages by up to 0.15 per cent. This is the second cut to rates in two weeks and shows our commitment to offering competitive deals to customers."