In a study conducted by Axa, some four million Britons believe that difficulties in handling their finances, in areas ranging from making loan repayments to paying mortgage or rent costs, have seen them develop an adverse credit status. About a quarter of these people (944,000) claim that their financial history has been spoiled as a result of the fiscal struggles that supporting their friends and family has generated.

However, it was suggested that more people could develop financial problems following the government announcement that 25 million personal data records from the HM Revenue & Customs were recently lost in the post. This could see many Britons open to identify theft, which in turn could damage their credit records. As a result of developing an impaired financial record, people could find that they struggle to get jobs, open up current accounts or successfully apply for a cheap loan. In turn, those looking to borrow could be more likely to opt for a bad credit loan.

Further research from the financial services firm indicated that those aged 45 and 54 are the most likely to be blacklisted. Some one out of five people within this age demographic state they have suffered an adverse credit rating as a result of developing problems in managing their finances, whether this is through areas such as not paying utility bills or struggling with increased loan repayments. In turn, such people may find that taking out a bad credit loan presents them with an opportunity to get back on their financial feet.

Commenting on the figures, Axa spokesperson Steve Folkard said: "Money problems affect people in a variety of ways, but one thing we are all wary of is the possibility of being blacklisted. The term used to mean that creditors were distrustful of applications from your address, but more recently it refers to individuals, regardless of where you live.

"Money worries are as much a social issue as they are a financial one. This is another example of how getting into financial difficulty can affect you and those around you if you rely on others for financial support. The knock-on effects of having a poor credit rating can be endless, as it becomes increasingly difficult to access credit."

The Axa representative added although people can find themselves blacklisted for a number of reasons one "sure fire way to worsen your credit rating", is by not making payments on household bills. As a result, he claimed that it is vital for consumers to stay on top of their finances, otherwise they may find that access to cheap loans and other forms of competitively-priced credit is curtailed.

Those struggling to manage their money were urged to "take action" in getting back on their financial feet, with a bad credit loan one possible way in which to meet various demands on spending.

Consumers who have experienced financial struggles in the past may find that their access to cheap loans and other types of credit is impinged upon. However, those who are confident that they will be able to meet repayments in the future, may wish to apply for a bad credit loan.

Such a loan could be useful for an increasing number of consumers, after a recent report by Datamonitor indicated that more people are to struggle with their money over the remainder of 2007, following the global credit crunch.