An estimated one million people are considering declaring themselves insolvent, as increasing numbers struggle with five-figure debts, research showed today.
One in five people now owe more than £10,000 through credit cards, overdrafts and loans, according to debt consultancy Thomas Charles.
Around 21% of people with debts of this size admit they frequently have problems meeting their repayments, 9% of whom say it is a struggle every month.
Divorced and separated people are most likely to be struggling with their borrowings, with a third of these people saying they often find it difficult to meet their repayments.
The research also found that 13% of people, the equivalent of around one million adults, said they were quite likely or very likely to declare themselves bankrupt or take out an Individual Voluntary Arrangement (IVAs) as their debts had become unmanageable.
A further 11% of those questioned have already contacted a debt advice company for help sorting out their borrowings.
Young people were particularly likely to be considering insolvency as a solution, with 16% of 25 to 34 year olds admitting they were likely to declare themselves bankrupt or take out an IVA.
Nearly a quarter of people blamed their high levels of debt on overspending, while 21% said it was because of poor cashflow and 13% said it was a legacy of being a student.
Other reasons given for being in debt included unemployment, illness, divorce or separation, leaving work to have a baby and losing overtime.
James Falla, director of Thomas Charles, said: "The Governor of the Bank of England is right to be concerned about the number of families who are struggling with high levels of unsecured debts.
"Our research shows an enormous uptake of unsecured debt across all areas: credit cards, personal loans, student loans, hire purchase and overdrafts. This puts literally millions on the borderline."
YouGov questioned 1,336 people during April.
