Indeed, cumulatively customers are expected to force banks to write off as much as £3 billion during the first six months of the year.

The situation is thought to have snowballed as a result of the competitiveness of the industry, with lenders widening access and taking on more and more borrowers.

Barclaycard, for example, saw its profits slide by 17 per cent over the first six months – with the bank relying on its corpoarate finance movements to recoup costs.

Citizens Advice senior policy officer Sue Edwards told This is Money that the growth had centred around “consumer debt problems – cards, loans and hire purchase”.

She said her organisation had seen many “vulnerable people” taking out credit cards which they had then been unable to pay off.

To read more about credit cards, click here.

© Adfero Ltd