FinSu IVA

Tag it:

Nearly 70% of UK households have planned to cut their spending this year. The current credit crunch and lack of disposable income each month, has hit UK households hard.

The findings are based on recent research performed by financial provider Axa, the research also showed that some households blamed it on the burden of high house prices.

37% say they will be eating out less, with 19% not socialising as much, and 8% were thinking about not renewing their insurance cover.

The research also found that one in six are going to stop saving or cut their pension contributions.

And 11% said someone in their household has taken on additional work to bring in extra cash.

AXA spokesman Steve Folkard said: "It's no wonder that households with above-average incomes are struggling to cope.

"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.

"One of the biggest issues, however, is that many seemingly well-off households lack the motivation to tackle their problems.

"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."

More than 2,000 people were questioned by YouGov during March for the Axa survey.