Nearly three quarters of the UK population are facing up to the fact that they will have to make cutbacks in order to avoid debt, as the cost of petrol and other household bills increases.
Research from Alliance and Leicester showed that 39% of consumers will cut back on clothes shopping, with another 36% saying they will have to reduce the amount they spend on their social life.
Current account manager at Alliance & Leicester, Emma Walkley commented, "It seems many of us are feeling the pinch and looking for ways to cut back."
She added, "The good news is that people are taking action now and looking at ways of making their money go further rather than burying their heads in the sand."