• Tripled concern over stretched finances from three months ago*

• Over half (53 per cent) already feel worse off

• More than two thirds (76 per cent) fear increase in basic living costs

• A third (31 per cent) are making sacrifices just to stay afloat

Consumers are battling the credit crunch blues as the economic reality hits home. As the economic downturn continues to tighten its grip, 53 per cent have already noticed a dramatic dip in their finances from three months ago, and worse still, over a third (33 per cent) predict even harder times in the next three months.

According to The Money Shop Monitor - a quarterly barometer of the nation's cash related habits - the number of consumers affected by the credit crunch has risen by a staggering 80 per cent (over half of consumers surveyed) with only 29 per cent previously reporting being worse off, indicating just how serious the economic situation has already become.

Increased basic living costs, including the price of essentials like food and petrol, are at the root of consumer fears as 76 per cent put this at the top of their own financial health check. Shopping trolleys are witnessing the first of the cutbacks, with a savvy 43 per cent ditching their premium, luxury brands of choice for cheaper ‘home brand' alternatives.

But, almost half (43 per cent) are cutting out life's little luxuries completely as sticking to the bare essentials means only spending on necessities and a third (31 per cent) admit making spending sacrifices is the only way they can stay afloat in testing times.

Andrew Bryan, The Money Shop, said: "The credit crunch has become a very real threat to consumers, with many feeling the effects already. It's encouraging to see consumers taking matters into their own hands and making their own budgeting plans a matter of priority.

"To help people ease their financial fears and avoid any unexpected bills, it's important they monitor their personal finances on a regular basis. Breaking down their finances into categories, which might include bills, basic living costs, and entertainment, will help stop finances spiralling out of control."

Father Christmas could benefit from an early finish this year as the festive season is top of the tree when it comes to cutting back. With a massive 47 per cent already making their frugal present and shopping lists, toys and gifts may be a little easier to come by on the high street this winter.

Top ways to cut back:

• Sacrifice the splurge - only buy essential items (43 per cent)

• Cut back on Christmas spending (47 per cent)

• Relinquish the luxuries - switch to home-brand cheaper products (34 per cent)

• Staying in is the new going out (31 per cent)

• Ditch the gym and cancel monthly membership (30 per cent)

As some consumers prepare for the worst and begin hauling in their purse strings, others are less willing to accept the gloomy reality. A hardy 12 per cent insist to being gloriously unaffected by the ensuing recession, but with almost one in ten (9 per cent) considering pawning off treasured items to make ends meet, it's clear the effects of the credit crunch are just beginning to hit home.

The Money Shop Monitor also revealed that it's not just basic living costs that causes the nation sleepless nights, 76 per cent continue to be vexed by rising utility costs, a third (29 per cent) worry about the costs of leisure activities and two fifths (39 per cent) are concerned about being able to make provisions for the future through savings and contributions to their pension.