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Millions of Britons look set to cut down on their basic expenditure in an effort to avoid financial problems in the wake of the credit crunch, according to new research

Debt management is becoming increasingly difficult for many thousands of families and most are now expecting to make cut backs to keep on top of their finances, MoneyExpert reports.

A study by the price comparison firm found that almost a third of consumers around the country plan to reduce the amounts they spend on going out, while the same proportion intend to cut their clothes shopping budgets.

Sean Gardner of MoneyExpert commented: "The credit crunch is moving on from being something that just affects bankers to having real effects on real people in the real economy."

The report from the price comparison firm went on to suggest that consumer who are struggling to manage their money should focus primarily on paying off any debts they have outstanding.

Last week, Abbey reported that the credit crunch has led to almost a quarter of a million UK consumers worrying for more than 24 hours each week about the state of their finances.

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