People 'turning to saving to fund purchases'

Instead of using credit offers, one financial expert claims that people will tend to fund purchases by saving up.

Britons look set to take a more responsible attitude towards money management over the course of the next few years.

Such is the assertion of Jasmine Birtles, founder of moneymagpie.com, who claims that while people have used credit cards and other borrowing products "for just about everything" over the last ten years, consumers will now look to curtail their expenditure.

And as this decade is set to be "a much more sober one" in terms of spending, she states that an increasing number of consumers will place money into saving accounts in order to fund major purchases.

"People don't particularly want to, but we have learnt a lesson - and also the money just will not be on offer as it has been before," Ms Birtles points out.

Her comments come despite a recent Post Office study revealing 38 per cent of people plan on using their credit card to fund day-to-day purchases such as groceries.

By Kate Guthrie