This year will see UK consumers handling their finances more cautiously, owing to the current economic climate.
That is according to research conducted by Friends Provident, which has revealed that more than 30 million people in Britain are planning to rein in their spending in 2008.
Following in the wake of the credit crunch, 33 per cent of consumers said that they intend to completely overhaul their finances, citing cutting back on socialising and credit card use as potential ways to reduce spending.
The survey also found that people will be less willing to lend money to friends this year.
James Ward, director of marketing at Friends Provident, commented: "The credit crunch is already impacting on consumers, both financially and psychologically. 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, like overhauling your finances, budgeting effectively, and investing your money in a way that makes it work smarter for your needs."
