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People are becoming increasingly thrifty during the credit crunch and may apply for loans in order to tide them over, it has been said.

Britons realise when they are overspending and are cutting back on unnecessary luxuries in order to save themselves that extra bit of cash, spokesperson for the Consumer Credit Counselling Service Tom Howard claims.

"It is always advisable to live within your means whenever possible, even if this means tightening the belt," he continues.

Furthermore, while getting a loan may be a solution for some, Mr Howard says people need to be financially aware whether or not they can make repayments and should take into account that their circumstances might change.

According to research commissioned by MoneyExpert.com and carried out by YouGov, 25.8 million adults in Great Britain have applied for a financial product in the past six months, which may have included secured loans.

Such loans may be used for a variety of things including starting up a business and structural home improvements.

Factors that may be taken into consideration by a lender includes the value of the borrower's home and the amount of mortgage currently in place.