A new study has shown that as many as 35 million people have been forced to make some form of financial cutback in recent months in an effort to cope with the increasing costs of fuel, food and other items of household expenditure.

In addition, the Alliance & Leicester study finds that approximately 36 million Britons expect that they will have to make further cutbacks on various items in the future as the amount of available expendable income falls. With costs of petrol steadily increasing and utility price hikes roundly implemented throughout the country, a third of all Britons expect that their disposable income will shrink in the coming six months.

For those who have been unable to cope with the recent increases in the cost of living and have found themselves facing mounting debts as a result, a debt consolidation loan may be of assistance in placing finances back on track and stopping payment demands from spiralling.

It seems that many Britons are preparing to limit spending in the coming months, with 39 per cent of Britons identifying clothes as one of the principal items to cut back on. A further 39 per cent said that they will be looking to cut back on the costs of basic living costs in an effort to remain buoyant in worsening economic conditions. More than a third (36 per cent) said that they would forego social experiences in the coming months in an effort to reduce spending.

Despite the constrictive financial climate, many people were found to be reluctant to cut back on contributions to pensions and retirement savings schemes, with just seven per cent of respondents stating that they were prepared to take this measure.

For those who have already been forced to make cutbacks to savings schemes to meet daily living costs, a consolidation loan may be of assistance. In taking out this type of loan, monthly repayments may be reduced, allowing people to put aside a little each month into savings vehicles.

Commenting on the figures, Emma Walkley, current account manager at Alliance & Leicester, said: “It seems many of us are feeling the pinch and looking for ways to cut back. 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. As a nation we are fairly financially minded which means that when budgets are stretched we can plan pragmatically how to cope.”

The firm also suggests that the tightened economic markets have led UK residents to shop around more in search of savings. Nearly half (45 per cent) of all respondents stated that they had compared prices before making purchases, while 39 per cent have said that they have made an invigorated effort to turn off lights to combat soaring energy prices.

The heightened awareness of money matters identified by the study follows publication of statistics last year by financial services firm Chiltern suggesting that many consumers were in denial of the extent of their debt problems. Around four million Britons were said to be overstretched meeting credit card and personal loan repayments.

1 Stop Finance Shop providing you with breaking debt consolidation loan news.