Britons are increasingly looking to be careful when managing their finances, new research shows.

A study carried out by Equifax reveals that about half of people are setting aside cash on a monthly basis for use in later life. Some 49 per cent of consumers questioned by the credit reference agency at the beginning of this year claim they are regularly putting money aside. Such a figure represents an increase from the 37 per cent recorded in the same study in December 2007.

The increase in financial preparations was attributed to a rising awareness among members of the public that economic conditions are set to worsen over the coming months. It was stated the credit crunch is going to increasingly make its presence felt, while the impact of the five interest rate rises leading up to August 2007 could also have an effect.

Just under three-quarters (71 per cent) of people setting cash aside were shown to be investing into a bank or building society savings vehicle. An estimated 45 per cent, meanwhile, are putting money into an individual savings account.

Following on from saving money more often and on a regular basis, it is possible that consumers can find they are able to cope with demands on their spending in later life with greater effectiveness. This could see them be able to meet the cost of property repairs, personal loans and credit cards with more ease.

Research from Equifax also indicated that ten per cent of homeowners have a mortgage which is worth more than five times their annual income. Meanwhile, the proportion of consumers owing more than 5,000 pounds through loans and credit cards has fallen from 42 per cent to 32 per cent. The study also showed that about one in four of those surveyed are at present not in any form of short term debt. However, only four per cent of people in 2007 could claim this.

Commenting on the findings, Neil Munroe, external affairs director for Equifax, said: “It is encouraging to see that people appear to be saving more and being more cautious when it comes to spending. But many people are still living with huge amounts of debt, meaning they could quickly fall behind on payments and jeopardise their credit rating. We advise consumers to apply for a copy of their credit file to gain a clear picture of their financial situation.”

He added that the firm’s study showed there is a “pragmatic attitude to savings” by many consumers. Mr Munroe also reported that there is more awareness among Britons to cut back on unnecessary day-to-day spending and instead save more money for the future.

Research from the firm also indicated that 42 per cent of Britons questioned this year state their disposable income goes towards buying new clothes, a fall from the 51 per cent recorded in 2007. Meanwhile, those spending money on dining out and takeaway meals has dropped by three percentage points to 52 per cent. In addition, the Equifax director pointed out that expenditure towards holidays “hasn’t changed much”.

Whether looking to make a major purchase or simply consolidate debts, taking out a personal loan could be of assistance to many consumers. By getting such a loan, borrowers could find that they are left with affordable low-cost repayments to make at the end of each month. However, ahead of doing so it may be advisable for consumers to take out a copy of their credit report.

In doing this, Equifax claimed, prospective loan applicants will be able to get an idea of what their credit score is and how likely it is that they will be able to make a successful request for a cheap loan.

Furthermore, a cheap personal loan could prove to be of assistance to those still struggling with their spending in the wake of the festive period. Speaking last month this year, Chris Tapp, director of Credit Action, stated that Britons should be taking steps to curb pressures on their spending and cut back on their day-to-day expenditure. He pointed towards predictions that inflation rates are to rise as the general financial market continues to diminish.

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