Though numerous TV shows or newspaper articles seem to take pleasure in criticising the lack of restraint shown by the UK's avid consumers, the majority of Brits are now taking a sensible approach to their personal finances in the wake of the global credit crunch.

Certainly it cannot be denied that a significant proportion of the population spent freely when the times were good and the credit was easy, with many enjoying several foreign holidays a year, almost always put on their credit cards, while others even managed to obtain mortgages several times the value of their incomes and thereby take a step onto the property ladder.

However, now that the cost of living keeps going up and the nation's lenders get tough on how much they are willing to hand out in credit, financial experts have welcomed news that, for the most part, people are adjusting their outgoings accordingly.

Tom Howard, spokesperson for the Consumer Credit Counselling Service (CCCS), explained: "It is also noticeable that people are approaching and tackling the credit crunch in the right way, by being thrifty, recognising overspending and cutting back on any past excesses and unnecessary luxuries.

"It is always advisable to live within your means whenever possible, even if this means tightening the belt."

Fortunately, for those Brits lacking the willpower to cut back and having grown accustomed to simply taking out a personal loan or new credit card in order to fund a lifestyle above their salaries, lenders are also taking steps to ensure that no one can get much further into the red any more.

Indeed, recent research carried out by YouGov on behalf of MoneyExpert found that, of the 25.8 million British adults who applied for a financial product over the past six months, 13 per cent saw their request for a credit card flatly turned down, while six per cent saw their request for a personal loan refused.

Given that the average APR on credit card purchases has gone from being 16.77 per cent in March of this year to 17.46 per cent now, while the average rate on a £5,000 personal loan has soared from 8.6 per cent to 15.3 per cent over the same period, it is perhaps just as well that Brits aren't being allowed to get themselves even more into debt.

Of course, a little borrowing can often be a good and useful financial tool, particularly in the short-term, and without such a practice, millions would still be renting or taking the bus to work everyday.

However, like it or not, the global credit crunch has changed things dramatically and, whether it be through coercion or a proactive move to get back into the black, it seems the UK is finally taking a sensible approach to personal finance.