The debt goes on

Rising mortgage or rental costs have forced seven per cent of people to take out a personal loan in the past year. The research from price comparison site moneysupermarket.com also found nine per cent of people have had to spend a lot more on their credit cards because of increased housing costs.

Twenty per cent of people in their forties have been forced to turn to loans or credit cards to keep their heads above water. And with £30 billion worth of mortgage deals coming to an end in July, many more people will be thrown into the vicious situation of facing much higher monthly repayments.

Tim Moss, head of loans and debt at moneysupermarket.com, said: "It's a very serious situation when you have people turning to a short-term solution to fund a long-term product.

"Having a roof over your head has to be your top priority but to be funding that with a loan you might default on or with a credit card that will eventually charge you interest of over 15 per cent isn't the solution in the long term. Approximately 4.1 million households have fallen into this trap in the past year - and it needs to be remembered that taking out a loan specifically for a mortgage goes against lenders' rules."

There are positive steps that people who are struggling can take.

Tim Moss added: "People have to start ranking what they are spending their money on. You need to rank your mortgage or rent and food at the top and work your way down from there.

"There's no point having Sky+ if you don't have a roof over your head. You should also shop around so you aren't paying over the odds for the essentials of life such as heating, electricity, food and insurance.

"As well as saving money, you need to look at ways of making money. A house is a tremendous asset so can you rent out a room or house share? Is your current account one that pays interest so any money you do have is at least working for you?

"Looking for a loan or racking up interest on your credit card isn't the answer to your mortgage or renting worries. You need to look at your current account and credit card statements and work out what you are spending your money on. Prioritise things and then look to save and make money in lots of areas. It is always a shock to people who see a debt manager when they realise how much more disposable income this strategy can produce."