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Newsletter

Brits tighten up their spending habits as loans become harder to access

By Sarah Engle, Mon 18 Jul 2011 - Published in Loans

British consumers are tightening up their money belts as loans are becoming harder to access, it has been claimed.

According to candidmoney.com, people in the past have overstretched their borrowing to fund everyday life.

However, the website noted as Brits face tax rises and government spending cuts they are becoming more aware of their finances and are restricting their spending habits.

Justin Modray, from candidmoney.com, said: "The credit explosion over the last decade leaves little doubt that many people have overstretched their borrowing to fund their everyday lives.

"However, borrowing has slowed recently due to lenders becoming more discerning and consumers tightening their belts."

Recently, research from moneysupermarket.com revealed that a quarter of Brits use credit cards to tide them over until the next payday each month.

Its report highlighted that one in ten people use a card as a fallback option in the first 15 days after being paid to fund their everyday living costs.