According to a survey by TSB, which collated responses from 5,800 participants, 83 per cent said they were concerned about personal finances right now.
Many said they were cutting back on other expenses, with 44 per cent saying they would go without a holiday while 35 per cent said they would hold back on home improvements.
The report noted that 15 per cent said they had fallen behind or missed payments for credit commitments or domestic bills.
Most are reducing their household spending, with 42 per cent saying they were taking this course of action, but nearly 49 per cent said they are dipping into savings or investments to cover the increased cost of living.
People are also taking out more debt, with 29 per cent stating they had taken out new or additional debt or plan to take out more in the next six months.
Of those taking out new debt, a quarter planned to use it pay household bills such as their mortgage, rent, council tax, electricity, gas and insurance.
Around one in five plan to pay for groceries and 20 per cent said they would use it pay off other debts.
Expenditure research conducted on TSB’s customers showed that spending on gas and electricity and fuel has grown by 54 and 12 per cent respectively.
Spending on groceries and clothing have both fallen by two per cent.
Carol Anderson, director of branch banking at TSB, said: “This research exposes the emerging gap between resilient households, with healthy rainy day savings built up during the pandemic, and those with no savings who are struggling to get by.
“For those who are feeling worried about the cost-of-living, it’s important to speak to someone that you trust. We’ve seen TSB customers coming to us for support and we’re holding around 5,000 customer meetings every week to help them manage their money and feel more confident about their plans.”
