A new study has revealed that as many as 12 million Britons - 25 per cent of the population - are struggling to meet their bills each month and would run into debt problems if their outgoings increase by just £50 per month, as the credit crunch rumbles on.

A recent poll of 2,007 people found that essential bills such as food, transport, housing costs, and energy bills account for 68% of household income. The average family spends £2,001 on these essential costs of living, according to the research.

After rent or mortgage payments, transport (£267), monthly shop (£208) and council tax (£120) make up the largest share of monthly expenditure. Even with mortgage rates at low levels, some families would find even small increases in their mortgage costs difficult to cope with.

Increased winter fuel bills and rising food costs could also present difficulties for families struggling to get by. It is to be noted that fuel bills have risen by 325% since 2003 and shopping baskets are up 27% year on year.

Roger Edwards, proposition director at Bright Grey, who commissioned this research, said: "The report reveals the average Brit is just £155 away from a money meltdown.

”The frightening truth is that many Brits are already struggling to afford their monthly bills - and all it would take is a small increase in bills or drop in income for people to find themselves in trouble."