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Credit crunch 'leading to spending cuts'

The majority of British adults are planning to cut back on spending due to the credit crisis, new research suggests.

According to the study, carried out by financial website MoneyExpert, 57 per cent will be tightening their belts.

Around a quarter will be reducing their spending on food - with 31 per cent cutting back on clothes and a similar figure on going out and home entertainment.

Just over one in ten will not be buying a car, as previously planned - and around half that figure will forego taking out a home loan by buying a property.

Sean Gardner at MoneyExpert blamed the ongoing credit crunch for the consumer trend.

"There is…a risk that we could talk ourselves into a recession by panicking unnecessarily," he commented.

"People with good credit records still have plenty of choice. There's no need to panic."

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