Save money on bills: Belt tightening is still required

It is still important for consumers to save money on bills as belt tightening is a major part of the current financial situation, according to one expert.

John Miles, from Gocompare.com, said that last week's spending review has kept everybody focussed on cutbacks.

He added that many people are stopping themselves from splashing the cash on things such as takeaways, nights out, clothing to reducing outgoings.

"I don't think that anyone is in any doubt that belt-tightening is still the order of the day. While it is now over three years since the credit crunch began, Gocompare.com’s own research showed that 41 per cent of UK consumers feel worse off now than they did 12 months ago," he stated.

Mr Miles went on to say that a quarter of households believe that they seriously need to reduce their outgoings.

His words came after the Markit Household Finance Index for October 2010 revealed a significant drop in household finances with the arrival of the spending review.