Household spending falls at fastest rate since 1991

Official figures have shown that household spending fell at the fastest rate in 18 years in the fourth quarter of 2008, as consumers looked to weather the impact of the recession and avoid debt.

Household expenditure fell by 0.7% in the final three months of 2008, compared with the previous quarter, according to the Office for National Statistics (ONS). Lower levels of spending on holidays, cars and dining out all contributed to this fall.

The fall in household spending is the largest since the second quarter of 1991, The Telegraph reports.

A spokesperson for debt management company Gregory Pennington said: "The figures may reflect not just reduced levels of disposable income but also changing attitudes in terms of spending that money. People are aware that the recession is likely to be difficult, and so more are trying to save money to help protect themselves.

"Of course, reducing spending isn`t always enough to help with existing problems - and we advise anyone currently struggling with bills or debt repayments to seek professional debt advice."

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Gregory Pennington offer a range of debt solutions, including debt management plans. If you are worried about debt, contact one of our expert debt advisers now.