Financial News

• Brown dismisses housing crisis fears (09 04 2008 10:15)
• Mortgage hope offered by bank (09 04 2008 10:15)
• Consumer morale 'falls again' (09 04 2008 10:15)
• Bristol & West withdraws deals (09 04 2008 10:15)
• Retirees feel 'unhappy due to no longer working' (09 04 2008 10:15)
• Severn Trent to be fined £36m (08 04 2008 04:15)
• Brown to announce first time buyers help (08 04 2008 04:15)
• UK bank details 'for sale by thieves' (08 04 2008 04:15)
• Last 100% mortgage to disappear (08 04 2008 04:15)
• High earners 'shut out of market' (08 04 2008 04:15)

Subscribe!

Middle Britain 'to cut spending'

Middle class households are planning to tighten the purse strings this year due to current economic conditions.

Rising inflation and the credit crunch were blamed for the trend by study authors at Axa.

The insurer found that 70 per cent will reduce their expenditure in some way for 208.

Over a third of families are planning to eat out less, 19 per cent will scale down their social lives and eight per cent are considering not renewing their insurance.

AXA spokesman Steve Folkard said: "A typical family in Middle Britain may have a higher than average income, but millions are weighed down by high lifestyle costs and face tough choices as the strain on their finances takes its toll.

"We've had it easy for so long and been happily spending without thinking of the consequences, that now people aren't sure what to do."

Axa also found that, in 11 per cent of families, the financial outlook has become so gloomy that a family member has taken on an extra job in order to pay the bills or pay off debt.

Other financial solutions for people facing money worries include taking out a consolidation loan in order to cover separate credit repayments.

Send this article to: