A report from Debt Management Today suggests that overdraft and personal loan debt levels in the UK are hovering at £177 billion. This is a marked increase from £161 billion within the past year, the report shows.

"The number of personal loans has fallen dramatically due to the tougher lending criteria from banks, so to still see such a rise in personal debt implies that people are using their overdrafts as a way to cope with everyday living costs," moneysupermarket.com’s Tim Moss recently told the Telegraph.

As has been widely publicized, while more Brits than ever are reliant on personal loans and credit to deal with the prospect of arrears, lenders are becoming increasingly restrictive when it comes to providing consumers with the crutches they require.

Debt Management Today further reported that the Bank of England has found that the average authorised overdraft rate on a current account rose from 17.4 per cent to 17.9 per cent in June. The data, also published in the Telegraph report, also indicates that the steep rise in the cost of living is virtually pushing people to seek out loans, even in the wake of the relentless credit crisis.