People are now more cautious with their cash than they have been in the past, results of an R3 study have found.
The insolvency trade body discovered that 51 per cent of people are not purchasing non-essential items such as clothes and DVDs, therefore giving them more cash to put in savings accounts.
Furthermore, 47 per cent of respondents revealed that they now shop around before buying goods, while 22 per cent buy more items from supermarkets instead of specialist stores.
Figures also showed that women are doing more than their male counterparts when it comes to cutting costs.
"We are seeing households tightening their domestic belts and looking for ways to reduce monthly out-goings," commented R3 president Frances Coulson.
He emphasised that people have seen their finances take a hit, with some people losing their jobs, while others have simply been affected by the rising cost of living.