People are increasingly likely to turn to plastic cards to pay for smaller items, it is claimed.

Fiona Wilkinson, senior vice-president at Visa Europe, says over 70 per cent of expenditure on Visa cards is on debit, with smaller items being purchased.

"This could be due to the fact more people are using their cards – both debit and credit – rather than cash," she continues.

People need to be extra vigilant when using their cards abroad, the expert adds, with holidaymakers needing to keep track of how much they spend.

Checking this against statements when returning home is also key, Ms Wilkinson states.

A report on consumer spending from Visa Europe recently found that the number of Visa debit and credit card transactions processed at UK restaurants in the first three months of 2009 rose 19 per cent compared with the same period in 2008.

Ecommerce also continued to grow strongly despite the recession with transactions up 22 per cent and total spend up 26 per cent to almost £10 billion on 2008, it also found.

People need to ensure they pay off their credit card debts as soon as possible, it is warned.

Liberal Democrat Lord Oakeshott says the banks must stop making credit card customers pay high interest rates and he is urging people to consider their outgoings.

"Paying these extortionate interest rates in the high teens destroys your financial health just like 50 cigarettes a day or 50 drinks a week," he reveals.

Lord Oakeshott urges the Financial Services Authority to warn the banks not to sell savings products with high interest rates in a bid to help people with their finances.

He adds that, at present, banks are guilty of mis-selling by providing products at a rate of 17 per cent, for the individual only to receive a seven per cent return.

UK Consumer spending on plastic cards totalled £32.3 billion in December 2008, a 0.3 per cent rise compared to December 2007, Apacs recently announced.

It also discovered that spending on credit cards decreased by 4.8 per cent in December 2008, compared to a 1.3 per cent drop the previous year.

The Budget is unlikely to help out the proportion of people who are struggling financially, it is believed.

According to Fairinvestment.co.uk, 63 per cent of Britons are finding their finances stretched since the onset of the credit crunch, with ten per cent worrying whether or not they will be able to pay their mortgage.

Furthermore, seven per cent of those questioned had been made redundant, with this year’s Budget needing to take real steps towards helping these people.

Sharon Bratley, chartered financial planner at Fairinvestment.co.uk, comments: "Public debt and spending has spiralled out of control, and the only feasible way to end this is to increase taxes in some way and whether it will be alcohol, petrol or cigarettes, any increase is bound to have an adverse affect on households."

The expert believes that the long-term goal of the chancellor will be to restore public finances, rather than those of individuals.

In its Budget wishlist, Rensburg Sheppards revealed how it would like to see the limit for individual savings accounts raised and the abolition of higher rate relief for pension contributions.

Falling property prices are leading pensioners to reconsider their retirement, it is claimed.

Michelle Mitchell, charity director at Help the Aged and Age Concern, believes this could limit the options for many of the country’s elderly people, namely those who were planning on selling their home to help fund care.

"People might find they have less choice about the type of care they receive and might need to rely on local authority support sooner," she continues.

The expert claims that the fall in property prices should act as a warning to those relying solely on the capital in their home to fund their later years, which could lead people to seek debt management guidance.

Having funds in a variety of investments is crucial to ensuring financial stability, Ms Mitchell adds, which will reduce the risk of losing money.

Propertyfinder.com reported in April 2009 that the total value of pensioner property had fallen by £220 billion to £800 billion in the last year alone.

Pensioners own one third of the country’s property by value, but make up less than one sixth of the population, it added.

Britons are increasingly more likely to pay off their debts than save, it is claimed.

New research from unbiased.co.uk shows that at the beginning of last year, the public was borrowing 66 pence for every pound it saved, with savings levels rising to a record high in the second quarter of 2008.

However, during the last quarter of 2008, Britons were repaying £1.76 for every pound they saved, with levels of saving almost halving to £19 billion.

"This shift itself is no surprise but its severity confirms the historic impact of the credit crunch on consumer behaviour and evidence suggests this repayment trend is continuing at pace," says David Elms, chief executive of unbiased.co.uk.

He adds that there is a lot of "consumer fear" at present, with people perhaps needing to seek the expertise of a debt management firm to help with their finances.

Research from Abbey recently found that more than two-thirds of Britons (69 per cent) have at least one credit card, with the average credit card debt standing at £3,256.

Many of the country’s pensioners are turning to equity release as a means of repaying their mortgage debt, it has emerged.

Research from Key Retirement Solutions shows that the average mortgage debt stands at £43,069, with the financial burden failing to ease as pensioners go further into their retirement.

Chris Tapp, Director of charity Credit Action, comments: "These figures dramatically demonstrate how skewed this picture has become in recent years as people have been forced to borrow more and borrow for longer to afford property.

"This debt dependency is hugely concerning and something we as a society need to urgently address."

It is estimated that those over the age of 70 are struggling most with the burden of mortgage debt, with loans averaging at around £48,442.

This, according to Key Retirement Solutions, is a stark difference to the £34,272 debt experienced by the 65-69 age group.

Earlier this week, Safe Home Income Plans revealed how pensioners are being affected by cuts in the base rate, with their income being slashed by a quarter over the course of the last 12 months.

Large numbers of Britons have already spent their wages by the 20th of every month, it has been revealed, with many opting for a live for today attitude they cannot afford.

The research, conducted by the Co-operative Bank Current Accounts, shows over half of people’s wages are generally spent during the first 11 days of receiving it, usually on shopping trips and nights out.

John Barker, head of current accounts at the Co-operative Bank, says: "The research shows that many people are still looking to go out spending straight after being paid every month, but with the current economic downturn, it clearly leads to a much more difficult time later when many cannot get their wages to stretch until they are next paid."

He adds that keeping spending under control is more important than ever during the economic downturn, with people needing to keep an eye on their bank accounts.

A survey from Fairinvestment.co.uk recently discovered that the average amount saved each month is £128, a fall of more than £10 compared to the £138.64 that people said they saved each month back in August last year.

Those reaching retirement age are generally naive about their prospects, it is claimed, with many failing to pay into a fund.

Over half of Britons surveyed by the Halifax are not currently saving for their future, while 70 per cent over-estimate what they will receive in their state pension funds.

"It may be a natural assumption for many to delay saving for retirement when faced with day to day expenses, but it is important that retirement plans do not bear the full brunt of the current economic climate," says Karen Crowshaw, managing director of Halifax Financial Services.

Of those questioned, many were only willing to save £59 a month towards their pensions, less than half the recommended amount of £150 a month.

Under the Pensions Act 2008, from 2012 it is planned that all eligible workers, who are not already in a good quality workplace scheme, will be automatically enrolled into either their employers’ pension scheme or a new savings vehicle.

Furthermore, to encourage participation, employees’ pension contributions will be supplemented by contributions from employers and tax relief.

Pensioners’ incomes have been reduced significantly due to cuts in the base rate, new research suggests.

Findings compiled by Safe Home Income Plans (Ship) show that in April last year, the average pensioner was receiving £158 a month on their savings, accounting for 28.26 per cent of their overall income.

Now, however, they receive £16 a month, which equates to just four per cent of their monthly income.

"Many pensioners have saved their whole lives with the expectation that they can use income from this capital and the state pension to fund a comfortable retirement," reveals Andrea Rozario, director-general of Ship.

He believes many are now struggling to come up with ways to supplement their income, which may lead them to consider seeking advice from a debt management company.

Official statistics show the life expectancy in the UK to be 76.9 years for males and 81.3 years for females.

Furthermore, between 1980-82 and 2004-06 life expectancy at age 65 in the UK increased by four years for men and 2.8 years for females.

Britons are increasingly prioritising paying off their debts over building up their savings, new figures show.

With the Bank of England having cut interest rates several times over the past few months, more than half of those consumers polled for the new Nationwide Savings Index stated that they feel now it is a bad time to be putting money away for the future.

Indeed, the new report reveals that less than half of all Britons now save on a regular basis, with one in four saving nothing at all.

According to Nationwide, it is this desire to get back into the black that is behind the recent rise in household savings recorded by the Office for National Statistics (ONS).

Martin Gahbauer, senior economist at the lender, explained: "At present, the rise in household savings being picked up by the ONS is occurring via a reduction in borrowing, as households seek to accelerate their debt repayments in response to the uncertain economic environment."

This comes soon after the Bank of England revealed that growing numbers of homeowners are looking to take advantage of low interest rates to pay off their mortgages.