Financial experts have stated that debt connected to mortgages, loans and credit cards can be managed.

It has been revealed that those struggling to repay their mountain of debt can do so by being ‘savvy borrowers.’ As a result, clued-up customers will be in a better position to negotiate repayments with their lenders.

The first thing consumer’s worrying about debt should do, is to approach their lenders and work out a ‘reasonable’ amount to pay back on a monthly basis rather than attempting to repay the whole loan.

Freezing the rate of interest, paying a nominal amount each month and putting any arrangements in writing has also been recommended.

A group commented: “Its effect on credit-rating [is that] bankruptcy stays on record for at least six years. Even after that you may struggle to get credit - lenders will be wary you may not honour obligations to them.

“[Bankruptcy] is the last resort for those who don't have money to repay debts. You have to sell assets such as your home and will be left with no access to credit cards or loans and just a basic bank account with no overdraft.”