Consumers Intend To Spend Despite Crunch

Author: Abbi Rouse

| Posted: 25-06-2008 | Comments: 0 | Views: 3 | Rating: (160)

(?)

Despite growing uncertainty about the health of the economy, many British consumers have expressed their intentions to splashing the cash over the summer period as extensive sales get underway.

In a recent report by Sainsbury's Bank, it was suggested that total spending could be as high as 7.89 billion pounds on discounted items during the warmer months. While this figure is less than was spent over the same period last year, average spending still totalled 305 pounds and 90 pence per person, with the bank commenting that such a figure shows that Britons still have a taste for bagging a bargain. Common items which participants would spend their money on were clothes, which are expected to account for 33.5 per cent of all summer sales transactions. Home furnishings are anticipated to constitute 18.5 per cent of spending, while electrical goods are predicted to amount to 15.5 per cent of summer purchases.

For those looking for an effective way to fund such purchases, taking out a low rate loan may be of interest. By choosing this type of loan, people may be able to grab the best bargains before they disappear, leaving them with affordable levels of repayment.

Indeed, Sainsbury's Bank identifies that for many people, the cost of bagging a summer deal will have to be met with credit as the rising cost of fuel, food and energy make their presence felt. The group predicted that 42 per cent of all spending carried out in the coming months will be placed on credit cards. Such a percentage would amount to some 3.29 billion pounds worth of purchases made using plastic.

Commenting on the statistics, Donald MacLeod, head of cards at Sainsbury's Finance, said: "A growing number of credit cards now offer some sort of reward every time you use them but some of these have catches. For example, some put a limit on the financial value of their reward schemes and others can make it difficult to redeem your rewards or points. This helps explain why only around 36 per cent of people who have collected rewards linked to their cards over the past 12 months have so far. If you are going to use a credit card in the summer sales, it pays to use one that gives you attractive rewards."

Despite a large amount of spending, the report found that many Britons are still expecting to cut back on purchases made during the sales. Around 20 per cent of people anticipate that they will spend less during the summer period when compared with their level of expenditure during the same period in 2007. Meanwhile, 63 per cent of people said they will spend the same amount. Only eight per cent of people anticipated a higher level of spending.

Late last year, a study carried out by Unbiased suggested that many Britons had felt the pinch of higher interest rates and had resorted to loans and other forms of credit to cover summer spending. During the third quarter of 2007, 35 pence was borrowed for every pound saved.

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Cheap, Loans, Spending, Finance, Debt, Consolidation, Not, Credit, Debts, Consumer, Crunch, Stopping

Article Source: http://www.articlesbase.com/loans-articles/consumers-intend-to-spend-despite-crunch-462182.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

Abbi Rouse writes for All About Loans where visitors can apply for UK self employed loans and also focuses on secured loans , and bad credit secured loans for UK Homeowners

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

More Time Being Spent Servicing Debts
By: Abbi Rouse | 13/03/2008 | Debt Consolidation
People are taking an increasing amount of time to service their debts, it has been revealed.

Borrowers Advised To Be Active In Repaying Credit Card Debts
By: Steve Smith | 08/04/2008 | Debt Consolidation
Britons may find that their access to credit is diminishing, a new report shows.

Banks Far Too Slow to Increase Credit Interest Rates
By: Abbi Rouse | 17/06/2008 | Finance
Despite recent price wars in the credit interest rates offered by banks, too many are still offering low incentives for those who keep their accounts in credit, a new report has asserted.

Capped Price Energy Deals not Being Taken Up
By: Abbi Rouse | 19/08/2008 | Finance
More than half of householders were unable to secure a capped price energy tariff prior to the latest round of price hikes, the Motley Fool has indicated.

New Study Shows Drop In Consumer Confidence
By: Mark Dawson | 16/05/2008 | Debt Consolidation
Britain's financial optimism has plummeted, according to a recent set of figures.

Financial Concerns for Consumers as Inflation Eats Away at Income
By: Abbi Rouse | 04/08/2008 | Finance
Rising inflation and a lack of credit has forced many Britons into a difficult economic situation, according to Legal & General.

Planning Can Help Reduce Debt In 2008
By: Steve Smith | 10/01/2008 | Debt Consolidation
Consumers looking to get to grips with their finances during the first few weeks of the year should avoid unnecessary spending, an industry expert has reported.

Cml Reveals Drop in Mortgage Lending
By: Abbi Rouse | 13/03/2008 | Finance
Mortgage lending has fallen, new research shows.

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:

Latest Loans Articles

Home Equity Loan - How to Release Your Equity Easy as Pie!
By: Robert | 21/08/2008
How can UK homeowners release their equity safely with being ripped off.

Borrow Vs. Saving: Do You Really Need Another Loan?
By: Andron Fisher | 21/08/2008
Taking out a loan is a great way to spread the cost of an expensive item over time. Without loans we would not be able to afford major purchases such as automobiles, homes and college educations.

Avail Personal Loans to Fulfil Your Wishes
By: Gracy Bonsu | 21/08/2008
Personal loans are the most genuine and most transparent kind of loans that exist in every loan market around the world. Even for people suffering from the bad credit score, there is bad credit personal loans.

Need of an Extensive Research to Find Low Rates Loans
By: Gracy Bonsu | 21/08/2008
Looking for a cheaper personal loan can be quite confusing and time-consuming. For this purpose, there are numerous lending authorities in the UK offering efficient and inexpensive personal loans. Inexpensive personal loans can be looked online by every borrower in the UK.

Get Secured Loans and Enjoy the Life Fully
By: Gracy Bonsu | 21/08/2008
Secured loans are the best option for a person, when he comes across any kind of financial shortcoming. But despite facing the problem of credit crunch, there are still many lenders across the whole United Kingdom who are willing to offer cheap secured loans at a very reasonable rate of interest.

Online Finance Company!
By: Sadhana Dhanyal | 21/08/2008
It is not easy to get a loan approved in a short period of time. Generally, lenders take a considerable amount of time to approve a loan. They take into consideration the credit score of the borrower, his repaying capacity, financial situation among other things while approving a loan.

Instant Loans Company!
By: Sadhana Dhanyal | 21/08/2008
Are you finding it difficult to secure a loan urgently? Don’t know where to look for help? Don’t worry. Find a simple solution in the form of instant loans no faxing. These loans are meant for the short term needs. They are very easy to avail. The process of loan application is very simple.

Payday Loans: Easy and Fast Approved Loans for Immediate Needs
By: Scarlette Riley | 21/08/2008
Payday loans are fast and easy loans. The loan amount is £100-£1500 for the loan term of 2-4 weeks. The interest rate is high and these loans are given to the borrowers who are employed with stable salary and are the legal citizens. Both online and traditional lenders offer these loans.

More from Abbi Rouse

Consumers Move Away From Uncapped Tariffs
By: Abbi Rouse | 07/08/2008 | Personal Finance
With the latest round of energy hikes are released, people are rushing to get themselves themselves on fixed-price tariffs to dampen the effect of the savage cost rises, according to the Fair Investment Company.

Consumers Warned Over Repossession Alternatives
By: Abbi Rouse | 12/07/2008 | Debt Consolidation
As fears grow over the ability to make mortgage payments, homeowners have been warned about opting for sell and rent back schemes.

Travel Costs Causing Tiffs Among Holidaymakers
By: Abbi Rouse | 24/06/2008 | Travel
Many Britons have fallen out with friends and family before their plane leaves the runway as a result of concerns about the economic impact of taking a trip away, according to new statistics.

Middle Britain Lifestyle Not Possible For Many
By: Abbi Rouse | 21/06/2008 | Personal Finance
Despite perceptions of belonging to the middle classes, many consumers fall way short of the amount of income necessary to truly belong in Middle Britain, Axa has suggested.

Banks Are Too Slow To Raise Credit Interest Rates
By: Abbi Rouse | 20/06/2008 | Credit
Despite recent competition in the credit interest rates offered by banks, far too many appear to be still offering incentives for customers that keep their accounts in credit, a new report has stated.

Britons Spending Millions Replacing Lost Passports
By: Abbi Rouse | 20/06/2008 | Personal Finance
Britons may be wasting as much as 389 million pounds replacing lost or stolen passports while on holiday, financial services firm Halifax has suggested.

Brits Planning Major Home Improvements
By: Abbi Rouse | 14/06/2008 | Home Improvement
Over a fifth (21 per cent) of homeowners plan to make major structural changes to their home over the next year, a new study from Sainsbury's Bank has indicated.

Bank Maintains Rate At Five Per Cent
By: Abbi Rouse | 10/06/2008 | Personal Finance
The Bank of England's monetary policy committee (MPC) has announced its decision to hold the base rate of interest at an even five per cent.

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Follow ArticlesBase at http://twitter.com

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.07, 3)

Consumers Intend To Spend Despite Crunch

Article Comments

Related Articles

Got a Question? Ask.

Latest Loans Articles

More from Abbi Rouse

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter