Consumers changing their spending habits.
Posted: June 2nd, 2011 | Author: Joe | Filed under: Debt, Tips | Tags: Budgeting, debt management, Guest Post | No Comments »According to a survey by insolvency trade body R3, over 80% of the British population have changed the way they spend their money over the last year.
More than half (51%) of the population aren’t buying as many non-essential items such as DVDs and clothes, while almost half (47%) said they are now shopping around before they buy something to make sure they get the best deal. Just over one fifth (22%) said they no longer purchase non-essentials from specialist retail chains – they buy them in the supermarket instead.
The findings of the research revealed that women are ‘leading the charge’ when it comes to cutting back on spending – with more women switching to ‘value’ or own-brand products (42%), compared with 32% of men.
Almost half (44%) of women have started using discount vouchers when they go shopping, with just 31% of men doing the same.
Meanwhile, nearly one quarter (23%) of women now set themselves a budget – whilst just 15% of men do the same.
Frances Coulson, President of R3, said: “It is encouraging to see that a considerable percentage of people are actively trying to lower their expenditure as this will help them to live within their means. However, it is a shame that budgeting remains quite low down on people’s agenda. Setting a budget enables you to clearly see how much you spend against your income. A budget is probably the most powerful financial weapon in the fight against debt and its value should not be underestimated.”
Budgeting – how it can help ‘fight’ against debt
After that comment about budgeting being a powerful weapon in ‘the fight against debt’, we’re going to take a brief look at how your budget could help you fight against debt.
Your monthly budget can allow you to see pretty much everything about your finances: where your money is coming from, where it is going – and more importantly, where you may be able to save money.
If, for example, you can see that you’re spending too much money on non-essentials, and can’t afford your debt repayments as a result of this… this can help you cut back and free up the money you need for your debts.
That’s one reason having a budget is so important in the fight against debt – because you can clearly see where you’re spending too much money and make the necessary changes yourself.
Sometimes, however, cutting back might not be enough… and your debts may start to grow and become unmanageable.
If you can’t afford your payments and it doesn’t look like cutting back will be enough for you, you may find that debt management is a suitable solution to your problem. This site explains debt management in more detail, but you could also speak to a professional debt adviser for some advice on what you could do to help your situation.
Debt management isn’t without its drawbacks – repaying your debt more slowly can cost you more in the long run, for example – but it could still be the best way for you to address your debts.
