‘No-frills' summer as credit crunch takes toll on spending

More than a quarter (27 per cent) of Brits sometimes or always feel out of control with their finances and an additional eight per cent say they regularly spend more than they earn, according to research released by GE Money.

The YouGov survey also reveals that the effects of the global credit crunch are beginning to impact consumer spending on the high street. Over a third of Britons (37 per cent) say their spending habits have changed in the last six to 12 months with the majority of those admitting that they are making a conscious effort to spend less. Despite these efforts, nearly 40 per cent of people say they still have no money left at the end of each pay cycle.

A GE Money spokesperson, commenting on the research findings said: "As we approach summer we are urging people to take an active interest in sorting out their finances. With the cost of living increasing this is no time to relax; it is important that people take stock and ensure they know exactly what they owe and when."
It is not all bad news. Encouragingly, one in three (33 per cent) people claim to be debt free and almost half (44 per cent) of respondents say they save between £1 and £500 from each pay cheque. The GE Money research also shows recognition amongst British consumers of the need to take more responsibility for their financial affairs, with over half of respondents admitting they could be doing more to manage their finances.

Chris Tapp, Director of Credit Action, comments, "Struggling financially can feel like being the passenger in a speeding car with things moving very quickly and seemingly totally out of control. Even when people want to sort their financial situation out, they may not know where to go for information and advice. The web is now the second most popular place for people to turn, after friends and family, so it's important people are aware of the good sources of help that are available."

To help arm consumers with the tools they need to make more informed decisions about their finances GE Money - in partnership with the Consumer Credit Counselling Service and Credit Action - provides a money advice site (moneybasics.co.uk) that includes independent advice on everything from debt and savings tips to budget and mortgage calculators.