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People have become more prudent about how they are going to spend their funds as the credit crunch continues to bite, it has been claimed.

According to Moneyfacts, individuals are more aware of their disposable income and how this should be spent.

Indeed, while a loan can boost the cashpot of households, people may be more carefully about how they spend this money.

Commenting on the findings, Darren Cook, spokesperson for Moneyfacts, says: "As the recession kicks in I think everyone is aware there is going to be tough times ahead so I think lots of people are prepared or taking precautions so they don't get into trouble in 2009."

Such preparation may include taking out a secured loan.

Furthermore, households may have less of a shock when the bills arrive in the new year because of more frugal festivities, he adds.

According to Norwich Union, 33 per cent of families have enforced rules that mean only children will receive presents this Christmas, in a bid to save some extra cash.