The insurer claims, this amount of people have had no option other than to dig into their savings since the beginning of the year, with only 1 out of every 5 earners in the UK managing not to spend above their means. The group insisted that new savings ratio statistics showed that the minimum income on which people can put money aside now stands at 70,000 pounds, equivalent to 52,785 pounds after tax and benefits.

On top of that, it said that as a result of the global credit crunch, it is more important for people of all earnings brackets to manage their finances diligently in order to stay afloat as the crisis worsens. Only with tangible solutions to financial hardships will consumers be able to overcome the anxiety of entering a recession, AXA claimed.

As such, the group invited people to take part in the annual My Budget Day, which aims to raise awareness of the importance and effectiveness of setting out a firm financial roadmap. Occurring on the 20th November, the event will be particularly relevant as a result of the recent financial downturn, according to the insurer.

Regarding the current issues facing "real Britain" today, Steve Folkard a spokesperson for AXA claimed: "If only the richest members of society are managing to cope with their spending then we really need to consider how to improve the day-to-day financial health of British households. Talking about global issues is important but they need to be put in perspective with tangible solutions being offered to individuals. People are anxious about how to deal with their finances. You need to get into the habit of regularly reviewing your financial situation and My Budget Day is about kick-starting that habit."

He added that people only need to spend an hour each month reorganising their finance and in doing so they will be able to put themselves on a much firmer footing. On the other hand, according to Mr Folkard, many Brits do not know where to turn for financial guidance. He warned that while many people are feeling the pressure, those who do not pursue a remedy could end up feeling disengaged and dejected, which in turn could lead to further financial problems.

Those people that have seen their disposable income eroded recently, one solution may be to take out a consolidation loan and reduce their monthly outgoings. Meanwhile, for those who have found their access to money dwindle as the crunch has rumbled on, applying for a bad credit loan may allow them to begin making regular repayments and repair their credit history and get back on better terms with their creditors.

While more people may have been feeling the pinch since the beginning of the year, childrens charity Ray of Sunshine has recently claimed that one upside of the economic turbulence has been that families and communities are now becoming more close-knit as they try to do battle with the crunch.