Dr Andrew McCulloch, chief executive of the foundation, said that this fear is helping to drive the economic crisis "because the emotion is overriding logical thinking. "Individuals and institutions - keen to protect themselves - are now too afraid to lend, spend and invest," he said.
Unfortunately we cannot rely on Alistair Darling's Budget on Wednesday this week to remove any of our financial worries, but there are steps you can take yourself to help you to deal with it. Follow our guide to anxiety-proofing your money - and your life.
The first question to ask yourself is whether your financial worries are real and proportionate. If you are struggling with financial worries, sit down and write a list of the specific bogeymen you are dealing with. Are they genuine pressing problems (such as a bill that you cannot pay), or are they worries about the future (such as not being able to pay your mortgage if interest rates rise to 10pc or losing your job). Some may be worries that you can do nothing about at all, while others could be sorted by putting a plan into action.
Karen Mitchell, a psychologist who specialises in dealing with financial professionals in the City of London, said that people who are worried abut their money have a higher background anxiety.
"We help individuals to recognise the difference between subjective reality and objective reality, helping them to understand that a worrying thought is just a thought," she said. "It is not real, and we can choose to disengage from the worry and do something that allows us to feel that we are in control."
She said, however, that anxiety does serve a purpose, because it promotes planning. "It makes us weigh up risks so that we can make good decisions," she said. What is important is that you work out which of your money worries are ones that you could do something about now, and to make a plan accordingly.
Make a financial plan
Once you have put your worries down on paper you can plan and budget for how to deal with them. It may even be worth seeing a qualified financial planner to help you assess the correct response to your fears, but there is plenty you can do at home as well. Nick Cann, head of the Institute of Financial Planning said that, when it comes to money worries, information is the best way to get everything under control.
"Worrying about things without context is worse because you can just get into an ever downward spiral and start making irrational decisions which will probably make the situation worse," he said. "The fundamentals of Financial Planning are the setting of goals, the setting of a detailed and honest budget and the provision of a personal balance sheet listing all debts and personal assets. At this stage you start to know what you don't know and can then take some appropriate action or seek professional help to fill in the gaps," he said.
Making a budget of everything that goes in and out of your account is scarcely fun, but there are tools that can help you. Try using the financial planner at http://telegraph.wesabe.com to help you keep control of what you are spending. If used correctly, this can help you to see whether your spending is outpacing your earnings, as well as giving you a breakdown of what you are spending your money on. Then you can work out whether there are areas in which you can cut down.
Prioritise your debts
If you owe money, whether it is on a credit card, via a personal loan or an unpaid bill, it can be very stressful. It is even more worrying if you are not sure what you owe. The key to dealing with your debts is to pay off the most expensive ones first, bearing in mind that you will need to check whether you are locked into any contracts that do not allow you to pay off debts early (this is particularly likely with a loan).
To check how expensive a debt is, look at the Annual Percentage Rate (APR). This is a calculation that should appear on your statements and should tell you how much you are paying on the loan taking into account fees and other charges. The lower this rate is, the cheaper your debt.
Now make a plan to deal with the most expensive debt first. You may be able to shift some of it, particularly credit card debt, onto a credit card with a lower rate for balance transfers. For example, Virgin has a credit card that will allow you to shift your debt and then pay 0pc on it for sixteen months. This will allow you to make a decent stab at clearing the debt you owe, rather than paying interest. However, you will have to pay a fee of almost 3pc of the debt to take advantage of it.
If you only pay the minimum payment on your debt it will take you many, many years to clear it. So try and throw as much money at it as you can.
If you cannot cope with your debts after considering the size of them, you could try contacting an advice organisation such as the Consumer Credit Counselling Service or Citizens Advice for more help. CCCS can be contacted on 0800 138 1111, or www.cccs.co.uk , or Citizens Advice can be contacted in the first instance on www.cab.org.uk
Consider protection
If you are worried about losing your job and not being able to pay your mortgage or credit card bill, you can take out specific insurance to guard against this eventuality. Some policies will also cover you if you get sick, paying a monthly figure to help cover the bills.
If you go down this route you will need to make sure that the policy you choose is suitable for you, as many have exclusions for the self-employed. Also, if your company has already announced a redundancy procedure, it is likely to be too late.