Considered estimates have shown that the amount of Britons who will apply for unsecured loans will probably rise within the next few months, mainly due to the vice like grip of the credit crunch.

The Consumer Credit Counselling Service have issued this prediction adding that it’s important for borrowers to only borrow what they can afford to pay back, taking into account changing circumstances and unforeseen events. They advise that robbing Peter to pay Paul would only mean further financial heartbreak.

Their spokesperson Tom Howard, commented, "There is a possibility that more people will apply for loans as a means to tide themselves over during the future crunch period ... [however] it is always advisable to live within your means whenever possible,"

He added, "It’s important to note that many Britons are handling the credit crunch in the right way, by being thrifty and cutting back on excesses and unnecessary luxuries."