In the debt index study conducted by MoneyExpert, more than a tenth (11 per cent) of those people owing money were "very concerned" about their capacity to make repayments on their borrowing, whether through personal loans, credit cards or other means, in the three months leading up to the end of October. The equivalent of some 3.4 million consumers, this proportion of people represents a rise of four per cent of those experiencing major monetary problems from the same study carried out by the price comparison website three months ago.



Research from the company also reveals that one in four (25 per cent) Britons remain "concerned" about their level of debt between August and October, an increase of one percentage point from the preceding quarterly period. Meanwhile, an estimated 2.7 million consumers believe that they have gone at least ten per cent further into the red over the course of the last three months.

Conversely, the proportion of Britons who claim not to be worried about how much money they owe via home loans, credit cards and other means of borrowing has stayed relatively consistent. The number who state that they are currently "very unconcerned" remains at 17 per cent, the same level as recorded in the previous MoneyExpert study. Those judging themselves to be "unconcerned", however, have increased by a single percentage point to 24 per cent. As a result, a total of about 12.7 million people are untroubled about their capacity to handle their finances.

Sean Gardner, chief executive of MoneyExpert, said: "Over three million people are very concerned about keeping on top of their debts - a figure that has risen significantly in only three months. And with the festive season just around the corner, we can only predict that the number of people worried about their ability to deal with their debts is likely to increase. Christmas is a massively expensive time of year so you can't help but worry that many more are likely to become increasingly concerned about how they'll cope."

However, Mr Gardner pointed out that "many people have found ways to reduce their borrowing", with one possible way of doing this being the application for a debt consolidation loan. The chief executive added that may also wish to consider transferring their borrowing to more competitively-priced products. However, those who believe that they are developing unmanageable financial problems should make sure that they take steps to amend such difficulties immediately.

Consumers were urged not to bury their heads in the sand as the creation of a repayment plan towards creditors is the most important thing they can do to get their spending back on track. "It's not too late to sort out your problems before Christmas arrives," he claimed. Consequently, many Britons could find that applying for a low-cost loan as a means of debt consolidation could help them manage their finances as the festive period approaches. Such a loan may see borrowers clear off debts owed to a number of creditors quickly and leave them with a single low-rate monthly repayment.

Applying for a debt consolidation loan could see many consumers who previous refused to acknowledge the extent of their money problems freeing up funds to be used more constructively. And the numbers of people who could benefit are significant - a recent survey conducted by personal finance commentator Callcredit revealed that the majority of people do not accept responsibility for their financial situation.

Indeed, according to the firm as high a proportion as 75 per cent of consumers felt that someone other than themselves was the root cause of their borrowing stress.

By acknowledging that debts accrued must be cleared, consumers taking out a debt consolidation loan could see themselves back on the road to financial security.