Mismanagement of personal finances is being blamed for these statistics, with a firm finger being pointed at British spending habits, especially where non-essential items are concerned. This accounts for a staggering ?169 billion of spending, while the figures for bad credit are continually increasing.

Once debt begins to accrue, a consumer's credit score can be affected negatively as well, making it harder for them to qualify for loans, mortgages, finance deals or credit card applications. Those that do manage to ?slip through the net? can expect to pay much higher rates of interest than their solvent neighbours.

For those who are declared bankrupt or insolvent, the road to solvency and a good credit rating can seem a long and arduous one. It may seem there isn't a way out.

However, many of the consumers affected in this way are discovering that their financial problems can be eased by using the equity that already exists in their homes and making it work for them.

There is now a rise in the number of mortgage lenders who specialise in arranging mortgages and remortgages for consumers with negative credit ratings. By arranging suitable repayment terms with these lenders, regular and affordable repayments can be made which, in turn, can begin to positively affect these credit ratings and, with careful financial management, even reverse the score into a good one.

By contacting a specialist mortgage broker and there are many of them in the UK, it can be possible to find a lender who will respond favourably to the consumer's circumstances; some even offer ?repayment holidays? for a certain length of time which, again, allows other outstanding debts to be paid off more quickly and reverse the consumer's history of negative credit.