Most households will reduce the amount they spend this year as mortgage payments rise and the credit crunch worsens.

The poll by Axa Insurance revealed that 70% intended to reduce their outgoings, with 37% saying they would eat out less, 19% cutting back on socialising and 8% planning to skimp on their insurance cover.

One in six intended to reduce the amount of money they paid into their pension while 11% said a member of their household had taken on extra work in a bid to make ends meet.

"It's no wonder that households with above-average incomes are struggling to cope," said Steve Folkard, a spokesman for Axa.

"A typical family in Middle Britain may have a higher than average income, but millions are weighed down by high lifestyle costs and face tough choices as the strain on their finances takes its toll."