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spending habits

Checking & Savings, Costs, Debts, Financial, Financial Information, Financial Management, Financial Services, Financial Software, Financial Solutions, Money, Personal Finance

Britain’s Disposable Expenditure On The Up For First Time Since Credit Crunch

Spending on non essential products and services is on the increase after a hesitant start to consumer spending in 2009. Research conducted by Kublax, an online money management service, reveals that discretionary spending is on the up.

Kublax - money mangement platform

Products and services, such as shoes and gifts, are usually the first areas of spending to be cut down on in hard economic times. The fact that a lot of these spending areas are showing signs of recovery is good news for the economy, as it indicates that consumers are regaining confidence. This circulates money through the economy, creating a multiplier effect, rather than leaving it stagnant in savings accounts.

Kublax took a sample of 1000 adult users and studied their specific spending habits through their finance software, from everyday living to luxury purposes. The report found a massive increase in spending in the second quarter when compared to the first quarter of 2009.

The ‘Kublax Spending Index’ revealed holiday expenditure increased by a staggering 117% in the second quarter, rising from an average spend of £511 in the first quarter to an average spend of £1107.

Other spending categories with notable increase in the second quarter include:

• 62% increase on spending on children
• 28% increase on gifts and flowers
• 12% increase on clothing

These statistics indicate a more positive economic outlook for the summer period. Tom Symonds, CEO of Kublax comments, “The correlation between the arrival of summer and an increase in monthly outgoings may also be due to a seasonal change in attitude; as the weather brightens, so too does the mood of the British public as they unwind and treat themselves more.”

The results of the ‘Kublax Spending Index’ also correlated with other industry surveys of the same period, which found decreases in spending on eating out. Kublax found 42% decrease on coffees/sandwiches/snacks, and an 11% decrease in restaurants/dining spending.

Although launched in May 2009, the site has been in beta testing phase from September 2008 and collected the data from January 2009 to June 2009.

Kublax is a money management platform through which users are able to simplify their finances. The finance software works by pulling together all building society, bank and credit card accounts into one easy access location. Once all information has been compiled, users are able to budget and manage their finances more effectively than by viewing different statements from multiple banks. Kublax automatically categorizes spending and produces diagrams and charts illustrating how you are spending your money. Comparisons to user averages as well as an effective alert and reminder systems provides a sense of financial benchmarking and real time money management that is innovate, extremely useful, and is likely to save people money and reduce stress.

With set up taking a matter of minutes, Kublax is perfectly placed to help the online generation, who hold on average two current accounts and two credit cards, deal with their ever more complex finances.

To find out more about Kublax’s online finance software, or to read more about spending habits in the UK, visit http://www.kublax.com.

Via EPR Network
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Costs, Financial, Financial Management, Financial Services, Money, Personal Finance

As both consumer spending and saving slump, debt management company Gregory Pennington have said that the full extent of financial trouble in the UK is beginning to show

Debt management company Gregory Pennington have commented that the recent cuts in consumer spending and saving is a clear sign of the way the credit crunch and rapid inflation is forcing consumers to change their spending habits, and have advised consumers to do what they can to stay out of debt in the coming months.

As reported in The Guardian, spending and saving in the UK have taken a big hit in recent months. Following years of “debt-fuelled spending”, consumers are now being forced to reassess the ways they spend their disposable income. Just a few of the measurable effects include:

· New car sales at their lowest levels since 1966
· The number of people putting money into a personal pension fell by 1 million to 7 million over the last year
· Household savings are at their lowest since the 1950s, at an average of 1.1% of income in August 2008.

A spokesperson for Gregory Pennington said: “These figures paint a worrying picture for the economy, confirming many people’s fears about the extent of the problems we are currently facing.

“In a more stable economy, we would expect to see one of two things: spending going up and saving going down, or saving going up with spending going down. The two normally run opposite to each other. But due to the rapid rise in costs of living, we are actually seeing both go down, because people are increasingly being left with no money to do either.

“This is a dangerous situation – usually, we would advise consumers to make sure they are saving plenty to use as a ‘financial buffer’, should things get particularly tight. But the simple fact of the matter is that many people don’t have the money to do so.”

The Gregory Pennington spokesperson warned that the problems in the economy mean many people could be in danger of falling into debt in the near future: “Many people are finding that the financial commitments they made a year ago or more are becoming less and less affordable, particularly in the housing market,” he said. “Rising food, energy and transport costs have hit most of us hard, and while they continue to rise, more people are at risk of their outgoings exceeding their income. Once people fall into debt in this way, it often isn’t long before interest builds up and the debt can become unmanageable.

“We advise anyone who finds themselves falling into debt, or anyone who thinks they are about to, to contact an expert debt adviser as soon as possible. There are a range of debt solutions available to suit various situations, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).”

Via EPR Network
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