Two thirds of UK adults intend to rein in their spending as a result of the credit crunch, according to life and pensions company Friends Provident.

Friends Provident’s research found budgeting is the top priority for 41% of consumers, while 33% plan to completely overhaul their finances as a direct result of the global credit crunch.

Three quarters of those who want to give themselves a financial makeover believe they will be able to save money by doing so and almost a quarter anticipate saving more than £500.

One in seven (14%) intend to limit their spending by cutting back on socialising, while a further 13% will save money by getting rid of their credit cards.

James Ward, director of marketing at Friends Provident, said: “The credit crunch is already impacting on consumers, both financially and psychologically. Our research found that 40% of people are worrying more about their finances because of the credit crunch. The trick is to harness this heightened awareness and to do something positive, like overhauling your finances, budgeting effectively, and investing your money in a way that makes it work smarter for your needs.”