Half of Brits 'have stopped or cut saving in the past year'

Monday, 20 February 2012 11:54

Nearly half of all UK adults have stopped or reduced the amount they save during the past year, new research claims.

Some 52 per cent of those tightening their belts have made cuts to fund day-to-day living, while one in five are paying off debts such as personal loans or credit cards, according to the MoneySupermarket study.

More than a third of people polled said they had been affected by a reduced income, which meant they could no longer afford to save.

In the past 12 months, consumers have cut down on eating out, buying new clothes and going on holiday in order to cope with the everyday cost of living, the comparison site’s study shows.

More men said they had given up drinking alcohol to save money compared with women, but more women said they’d had to stop or cut down on having their hair styled compared with men.

The East Midlands and the North West were the top regions where most people had stopped or reduced their savings, the poll of 2,000 consumers reveals.

Kevin Mountford at MoneySupermarket, said: “While many are being forced to reduce their savings in order to pay for every day necessities, it is encouraging to see some consumers taking action and cutting back on lifestyle luxuries to prioritise their savings.”

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