The credit crunch continues its vice like grip on the country following news that one person every five minutes is declared bankrupt in the UK.

The news released by the debt charity Credit Action has also revealed that at least 104 properties are repossessed every day as the average household debt tops the 9,000 mark.

Roger Bootle, the managing director of Capital Economics commented, "The financial landscape will never be the same again. We've passed through a major event which is on a par of much of what occurred in the 1920s and 30s leading up to the Great Depression.’’

Alex MacDermott, policy officer at Citizens Advice, said: "Come and get advice as early as possible. There are lots of ways we can help. We can make sure you're getting all your benefits and tax credits.

"We can look at prioritising your debts, so we'd look at making your mortgage payments, your council tax, your fuel payments a top priority to make sure you don't get cut off or evicted from your property. Then we'd look at rescheduling any other debts out of what's left over." He concluded.