Nearly 50 per cent of UK borrowers are aiming to cut back on their monthly outgoings to help cope with current economic downturn, a new study has revealed.
The research by American Express found that almost half of Brits intend to "cut corners" on financial products, such as loan repayments, as the cost of living continues to rise.
According to the group, 44 per cent are most likely to cut back on family savings plans, while a further 30 per cent are planning to stop payments to their payment protection insurance provider.
The study also found 12 per cent were likely to cut their credit card payments and 11 per cent admitted they were expecting to stop making payments on their personal loans .
Last month, financial website Moneyfacts reported that loan repayments had reached their highest level since 2002.
It added that since August 2006 "the average rate on offer for a £5,000 loan over three years has increased from 8.1 per cent to 11.0 per cent", and warned that rates could potentially "get much higher".






