A recent report conducted by consumer group Which? has uncovered that one in four people are using their savings to purchase daily essentials such as food and one in five have gone into debt just to feed themselves.
The report also found that 36% are finding these economic times very difficult compared to 16% in 2006. Less than half the people interview also said they are managing to cope on their income, however 10% of people surveyed are predicting debt as a result of having to buy food.
The report was carried out on 2094 adults living in the UK in November 2011. Since 2010, the report shows that most people have felt the economic downturn in one way or another. As a result people are changing their habits just to survive. These changes include: shopping around for groceries, which we have mentioned this before about people using short date shopping sites to save money and socialising at home rather than in pubs and restaurants.
These changes in habit have made it even harder for economic recovery as places like restaurants as essential to economic growth. With this lack of income, restaurants are finding it increasingly hard to pay for things like rent, supplies, staff and restaurant insurance.
The report described a “3D squeeze” which looks into other issues, not just people’s income. This is explains why people that have the same income are having very different experiences of the recession since 2007.
It showed that people with high incomes are living reasonably comfortably although those whose income was £70,000 showed that they were only coping slightly more than those who had an income of £8,000.