The recent interest rate hikes are really starting to cause concern according to MoneyExpert.com, with more than seven per cent admitting they are “very concerned” about coping with debts. Those in the north of England, and people in the 45 to 54 age bracket, were the most worried about handling debt.

Chief executive of the comparison website company, Sean Gardner, said: “With more than 2.48 million very concerned about keeping on top of their debts it is clear that there is a serious crisis brewing.”

The company’s research demonstrates that a quarter of adults who are already in debt now owe more than they did three months ago having juggled finances to avoid the effects of higher rates.

“The financial squeeze is on after the Bank of England boosting interest rates five times in a year and people need to adjust to the idea that borrowing money is going to be more expensive for the foreseeable future,” Mr Gardner added.

MoneyExpert.com has launched a Debt Index to measure how people with debts control finances and to measure whether debt levels are rising or falling. The index will run every three months.

Mr Gardner explained that there are several options open to people struggling with debt and urged them to act responsibly. “It is important that people act and do not bury their heads in the sand,” he said.

On a more positive note, the research showed that 23 per cent of UK residents are debt-free, while around 40 per cent are unconcerned, or very unconcerned, about staying on top of debts.

Find out more about getting out of debt