Brits 'cutting back' due to credit crunch

People in the UK are increasingly trying to budget in order to save money, according to new research.

Budgeting is a top priority for one in ten consumers, while one in three people are planning to completely revamp their finances, Friends Provident has reported.

Concerns over the ongoing credit crunch have led people to consider cutting back on spending, with many deciding to limit the things they buy and how much they go out and socialise, the company stated.

Many people are expected to ask friends and family for money because of their financial situations.

"The credit crunch is already impacting on consumers, both financially and psychologically," James Ward, director of marketing for Friends Provident, said.

"Our research found that 40 per cent of people are worrying more about their finances because of the credit crunch. The trick is to harness this heightened awareness and to do something positive."

With the number of repossessions having increased by 21 per cent in the last year, people may also be concerned about their homes, according to the Citizens Advice.

People worried about money in the current economic climate may wish to consider shopping around for the best loans in order to give a boost to their finances.