NEXT year will be year of frugal living according to the latest Mortgage Choice consumer sentiment survey.

The results of the online annual survey, released today, reveal Victorians are likely to tighten their belts further amid rising utility bills, unemployment uncertainty and a lock of confidence in the global economy.

More than half of those surveyed this year said they planned to make changes to their financial situation next by reiviewing their budget, cutting back on spending or reviewing their homeloan.

"Our annual consumer sentiment survey has found that Victorian residents are not feeling overly confident about 2013, mostly due to external factors beyond their control," Mortgage Choice head of corporate affiars Belinda Williamson said.

"As a result people are taking a more frugal approach to their finances and are working towards proactive steps to change their financial situation for the better.

"The much publicised increase in the cost of utilities seems to be hitting everyone hard and this survey suggests that those in Victoria are not feeeling any more optimistic about their ability to meet these costs in 2013.

"We encourage those who are feeling the pinch to look at practical ways to positively impact their financial outlook for the year ahead, such as checking your home loan to see if you can get a better deal or by making changes to your daily spending habits."