Families 'adjusting to inflation with cutbacks'

With households having to deal with high levels of inflation and other financial difficulties in the current economic climate, many could be concerned about developing a bad credit rating.

One way to combat this risk could be to establish a budget plan and ensure bills are paid on time, every time, in addition to remaining credit active.

This could demonstrate to potential lenders the individual is capable of managing their money effectively even when their wallets are stretched.

Research from Aviva found many families are adjusting to rising inflation by making cutbacks wherever possible.

For instance, it was specified the percentage of income set aside for food has remained the same, but more is being done to maximise spending power by seeking out value brands.

Non-essential considerations are also being addressed, with 42 per cent of respondents avoiding the purchase of leisure items and 22 per cent claiming they no longer purchase personal consumer goods.

Posted by Tom Burroughs