Brits need to reduce spending, claims expert

Brits, including those seeking out the best loan rates, have been advised by one financial expert to reduce their expenditure in line with inflation.

Martin Bamford, chartered financial planner at Informed Choice, said that in the current climate people need to consider changing their spending habits and the things they purchase.

"If you spend a large amount of your budget on those items increasing in price the most, such as food and fuel, then certainly you will be feeling the squeeze on your household income," he explained to people considering payday loans.

He said that the amount individuals need to put aside for "compulsory rather than discretionary expenditure" will also make "a big difference" to their personal financial circumstances.

However, he insisted that there are ways to reduce expenditure in the current inflationary environment if people are willing to change the nature of things they purchase.

His comments follow the confirmation by the Office for National Statistics that inflation has remained unchanged at 4.5 per cent.

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2011-06-15 13:27:46 © Moneyextra.com