Half of Britons 'shore up finances'

3 April 2009 12:03am

More than half of households are taking steps to shore up their finances to help them weather the economic downturn, a survey has shown.

Six out of 10 people have either reduced their unsecured debt, overpaid their mortgage or increased their savings levels during the first quarter of the year, according to savings provider ING Direct.

Around 34% of people have paid down short-term debt, such as credit cards, while 30% said they were now saving for big ticket items, such as home appliances and holidays, and 28% said they had stopped using their credit cards.

A third of households said they were now saving more than they were a year ago, and more than two-thirds of the 23% of people who do not currently save, said they planned to start setting money aside during the coming 12 months.

More than half of people have cut down on eating out in a bid to improve their finances, 36% are going to the pub less and 44% are buying fewer new clothes.

People are instead taking up cheaper hobbies, with 20% spending more time gardening, 31% reading, 30% cooking and a third of people spending more time with their family.

Johan de Wit, chief executive of ING Direct, said: "The current climate has lead to a return to more traditional pastimes as the nation's households look to balance the books.

"It's also good to see that when households are confident to start spending again it will be on a firm foundation of savings rather than a reliance on credit."

© The Press Association