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Concerns about the state of the economy have seen millions of British consumers making sacrifices in order to maintain control of their finances, according to a new report.

Research by Mintel has found that 57 per cent of people have been making cut backs in recent months and almost one in five are thought to have changed their holiday plans because of money problems.

Debt associated with mortgage borrowing is proving to be more of a financial headache for millions of households and the rising cost of everyday living has been behind many people’s decision to tighten their belts.

Peter Ayton, chief statistician at Mintel, said: "In light of the credit crunch, borrowing has now become harder and we are likely to see even more people having to make sacrifices when it comes to their spending in the future."

A recent report from Fool.co.uk suggested that many young British consumers, particularly mortgage borrowers, are becoming increasingly concerned about the state of their finances because of the current economic climate.

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