Money Nut

Don't get too excited though - it isn't predicted to happen until next year. As of next year, people will begin to feel a bit better off than they have been recently, as oil and food prices become cheaper.

However, the credit crunch is likely to continue, according to BestInvest, but inflation should ease as well.

Research by the Association of Investment Companies found that food and energy were seen as a bigger financial threat than recession, with 52% of the public believeing this and only 13% being concerned about the looming recession. They also found that 23% of those asked were saving more and spending less.