Britons cut back in face of 'debt threat'

Friday 10th October 2008

Bankruptcy may be playing on the minds of many Britons, with nearly a fifth cancelling holiday plans during the current economic crisis, research reveals.

Research by uSwitch found that 18 per cent of British consumers have cancelled holiday plans altogether as many continue to face up to debt and bad credit.

Some nine per cent have opted for a smaller UK break in place of a big holiday away, while 42 per cent have cut back on the number of weekend breaks they had planned.

Ann Robinson, director of consumer policy at uSwitch, suggests that things are likely to get worse before they get better for the man on the street.

She explained: "There is no doubt that 2008 has been one of the toughest years that consumers have witnessed in a long time, and it looks set to get tougher.

"Consumers are finding it harder than ever to get their next credit or loan as providers lend with extreme caution."

However, its not just recreational spending that is being affected - consumers are also attempting to save as much money as possible on essential living costs.

More than half (51 per cent) of those responding to the price comparison site's survey claim that they have started shopping at a cheaper supermarket, while one in four is buying own brand products.

Meanwhile, Michael Saunders, economist at Citigroup claimed earlier this week that the UK's "recession is likely to be deep and severe".

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