Abbey reveals nation's savings steps

Switching to competitively-priced financial products is becoming an increasingly popular activity as the downturn continues.

Research carried out by Abbey Credit Cards reveals that just over a third (35 per cent) of Britons have changed financial products, a move which has saved them an average of £139 over the course of a year.

Looking forward, however, 30 per cent are aiming to make further savings this way over the rest of 2009.

The study also reveals 61 per cent of people have reduced their spending on entertainment, with this rising to 69 per cent for expenditure on food.

Callum Gibson, head of credit cards for Abbey, states: "At a time when people's finances are becoming ever more stretched, it's not surprising that Britons are becoming more astute about how they shop and are prepared to shop around and economise to make their money go further."

He goes on to cite research by the firm showing that by taking advantage of a zero per cent credit card deal, the average Briton with an outstanding credit balance could save more than £440 a year.

Recent findings by Halifax revealed that by making a few lifestyle changes - including giving up smoking, cutting back on shop-bought coffees and spending less money on takeaways - those looking to build up money to put down a deposit on a home could generate an extra £1,930 to put into a savings account.