People 'may need to rein in spending' in current financial climate

In order to adapt their finances to the present economic climate in the UK, consumers are being encouraged to consider reining in their spending.

According to the CashQuestions.com editor Annie Shaw, consumers might want to think carefully before they look to get credit.

She stated: "People really need to be starting to adjust to a lower level of spending.

"They can't be spending [like they were] at a time when the economy was booming."

Government cuts and taxes are both having an impact on the nation's economy at the present time, Ms Shaw went on to say.

With tighter finances, she believes that it might therefore prove tricky for people to justify buying items like sofas and holidays.

The expert made her remarks following the publication of research from the Association of Business Recovery Professionals (R3), which found that debt worries are being experienced by nearly 19 million of the country's consumers.

Posted by Gemma Walker.