Let's face it, when it's a choice between the mortgage or this month's must-have designer bag, something's got to give.
And that, of course, has meant bad news for the high street. As we stop spending on fast fashion pieces, they stop making money and it's financial doom and gloom all around.
However, while there might be dark skies ahead, there is one ray of light on the style front. While major chains report falling profits, some independent stores and boutiques around Manchester seem to be doing better than ever.
Indeed, some brave souls are flying in the face of financial fashion by setting up new shops, determined that they will be the ones to make us part with our hard-earned cash.
So, what would motivate somebody to go into business in the middle of the credit crunch - and why do they think we will spend our wages with them?
We spoke to two new boutique owners to find out what they've got in store....
The talent spotter
Former model booker Victoria Jackson, 31, opened the doors of her new boutique - Renegade Marmalade - in the northern quarter just three weeks ago.
Having spent years style spotting from the sides of the catwalk, the model scout has now turned trend spotter.
Setting up a boutique that stocks only emerging talent and new designers, with clothes that can't be bought anywhere else in Manchester, or sometimes in the UK. She says it's the unique nature of the clothes she stocks that makes her shop enticing to customers.
"I was just really frustrated by the dominance of the high street in Manchester," she says. "Everywhere you go it's the same mass produced stuff, I wanted to create a boutique with something that went against the grain.
"All the designers I stock are new talent, spotted from London Fashion Week or other shows. I've only been open three weeks but so far that seems to be working.
"I've found people might only have a little bit of money to spend but when they do buy fashion they want something that won't be seen on anybody else."
Labels currently in stock at the Thomas Street store include Danish label Anne Hagen, as worn by James Bond Quantum of Solace actress Olga Kurylenko at the film's premiere.
And there's German label Arreykono, Saville Row-inspired Hemyca and Spanish limited edition jewellery line Uno de 50 - which only makes 50 of each design to sell around the world.
Naturally, Victoria still has business concerns about setting up shop at this time. However, she hopes a downturn in fortunes for the big high street names might mean a new beginning for independents.
"I have to say I've not really noticed the credit crunch - although I was really wary just before we opened," she says. "It's definitely a tough market out there but I've had a steady stream of customers.
"Eventually, I hope we start to see more independents coming back to the city centre."
The vintage vulture
Classroom support assistant Michael Birch, 28, has followed his fashion dreams by setting up his own retro fashion store - Electric Slims Vintage - at the Old Mill Antiques Centre in Failsworth.
Hand-sourcing vintage fashion pieces from around the north west, he reckons the credit crunch revival of all things retro has actually helped his boutique flourish since opening in September.
"I have to admit I was a bit unsure about how it would take off, with the credit crunch and everything - but I've got loads of regular customers," he says.
"A lot of old looks are coming back in fashion, and I've got pieces from the 1940s to the 1980s. And, while I know there are a lot of vintage shops in Manchester, there's nothing like my store around Oldham so I'm offering something different."
By setting up away from the city centre, in a mill alongside other small traders, Michael is saving money on rents and overheads - meaning he can attract more customers by offering set prices on clothes, such as all dresses for £10 and all suits for £15.
Also, as he sources prime vintage pieces himself - instead of buying in bulk - from around 40 outlets across the north west, he says customers can enjoy a bit of retro chic without having to scour through every charity shop in the city.
"I know a lot of vintage stores buy in bulk - but they never know what they are getting. I pick every piece in here myself, so I've had great outfits in from the likes of Christian Dior or Aquascutum.
"I know the bigger companies are struggling now.
"But I'm hoping that means we might go back to the days when the high street was lined with lots of little independents."
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