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People feel pinch as credit crunch bites
Four in 10 people are worried they will be worse off this year as a result of the credit crunch, says a new report
Financial pressures arising from rising council tax bills, the credit crunch, and increasing inflation are causing many Brits to live in fear, wondering what the next big bill will be to fall through their letterbox.
A study showed that the main cause for concern for the over 55s is rising utility bills, with more than 75 per cent highlighting not being able to afford heating, water or electricity as their biggest financial fear.
According to Gumtree.com, three quarters of us are now planning to make cuts thanks to rising living and mortgage costs which have put a further strain on household budgets.
Home grown holidays, dinner parties and an online second hand revolution are set to become commonplace as we end an era of living on borrowed credit and beyond our means.
Top of the cutbacks is eating out and socialising away from home. A quarter of people say they are going to replace restaurants and bars with having friends and family over for dinner parties, book groups and afternoon tea.
Some 14 per cent are even going to ditch their morning take away coffee for a homemade alternative.
When it comes to motoring, a third are planning to cut down on fuel costs by using the car less and one in 10 are looking at ride-share as a viable option to get to work or get their children to school.
What's more 16 per cent are planning on downgrading - or trading in - their current car for a more efficient one as the struggle to beat the rising cost of fuel begins.
Debt charities stress that the most important thing during hard times is not to continue to overspend, and to be strict about budgeting.
Steve Wilcox at Citizens Advice said: "Burying your head in the sand about money is never the answer. You need to confront any shortfalls you have where your outgoings exceed your income. Setting out a monthly budget can seriously help identify where cuts can be made to what you pay out."
Consumers concerned about their financial health should seek advice either from their independent financial adviser, or a free service such as the Consumer Credit Counselling Service, National Debtline or Citizens Advice.
* Written by Holly Thomas. Holly is an award-winning financial journalist and Deputy Personal Finance Editor at the Daily Express and Sunday Express. Holly's views represent her own opinions and are for general information only. Always seek independent financial advice.
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