With over half (51%) of the population buying fewer non-essentials such as clothes and DVDs, according to a survey by R3, the insolvency trade body.
The research finds that close to half (47%) of consumers say that they now shop around before buying goods, with over a fifth (22%) admitting that they have started to buy non-essentials from supermarkets instead of specialist retail chains.
R3 President, Frances Coulson says:
"Over the last year people have seen the cost of living increase as
their pay has been frozen, cut or, in the worst scenarios, they have
lost their jobs. People are uncertain about what the future holds
financially and the most natural response is to be cautious.
"We are
seeing households tightening their domestic belts and looking for ways
to reduce monthly out-goings. In these instances non-essentials are the
first to go.
"However, it's clear from the results that for those who do not wish to go without their non-essentials the supermarkets seem to be offering a better deal."
"Interestingly, the figures show that women are leading the charge
when it comes to reducing their costs. More women have switched to
‘value' or ‘own' brands: 42% compared with 32% of men.
"Over forty percent of women (44%) have started using vouchers when shopping, whereas just 31% of men admit to doing so. More than one in five women (23%) now set themselves a budget, whilst only 15 percent of men have started working to a budget.
Coulson comments:
"It is encouraging to see that a considerable percentage of people
are actively trying to lower their expenditure as this will help them to
live within their means. However, it is a shame that budgeting remains
quite low down on people's agenda. Setting a budget enables you to
clearly see how much you spend against your income.
"A budget is probably the most powerful financial weapon in the fight against debt and its value should not be underestimated."
