With the credit crunch rolling on and UK households preparing themselves for a summer of belt-tightening, it seems sadly inevitable that some sacrifices will have to be made.

Retailers are already feeling the pinch as Brits stay away from their weekly dose of retail therapy, while the Confederation of British Industry (CBI) just this week reported that businesses in the service sector, such as restaurants, hotels and even cinemas, are now having their toughest time for years.

However, one of the first things to be ticked off many households' 'outgoings' list will be the annual summer holiday.

With many people already bogged down and stressed out with money worries, this is only likely to lead to growing despair, experts have claimed, pointing out the mental and health benefits of taking some time off with the family, even if it is just one week in an English caravan park.

According to the latest figures published by Abbey Credit Cards, parents are facing an 80 per cent hike in prices on last year's rates should they wish to fly away for a half-term break.

Added to this, the declining value of the pound against the euro makes a holiday in the sun overseas even less affordable to the average family, while hotels and holiday resorts in the UK are being quick to cotton on to the fact that trade might be up and are dictating their prices accordingly.

Given this, one in six families polled by the lender admitted that they have put their holiday plans on hold indefinitely due to financial reasons, which, according to the Family Holiday Association, is a genuine shame.

John McDonald, the director of the organisation, explained: "All the feedback that we have got indicates that a holiday makes for happier, stronger families.

"From the family's perspective, the single biggest improvement is simply spending time together and bonding. So a holiday, as we all know intuitively, is good for you," he added.

Given this, families would do well to look to make other sacrifices before they choose to ditch their annual holiday, for example by shopping around for cheaper deals on their car or home insurance or even their broadband commitments.

Though these may be small savings, as the saying goes, every little helps and, when looked at over a few months, they can add up and even offset the cost of taking a break away from the stresses of everyday life.

The worst course of action, however, and one which sadly many people will choose to take, is to put a holiday on credit.

If it's simply unaffordable, it's best to wait for the economy to take an upturn again rather than risk having significant debts long after the suntan has disappeared.