The impact of the banks “irresponsible lending” has increased the level of personal debt has to just under £20,000 per person as more Brits borrow more than they can afford, new research has found.

According to figures from the Citizens Advice Bureau (CAB), the average amount of personal debt for homeowners in the UK has reached almost £17,000 per person.

45 per cent of UK homeowners have secured loans or mortgage arrears regardless of receiving previous debt advice.

These figures compare to less than a third of homeowners only five years ago.

With one in three Brits spending at least half of their monthly income on repaying loans, chief executive of the CAB, David Harker blames “irresponsible lending” and “badly informed financial decisions.”

He said: "These findings make sobering reading, especially as they are based on data collected just before the worst of the credit crunch began to bite.

Since then we have seen an enormous rise in the number of people turning to us for help because they have lost their job, so we can expect to see many more people struggling with severe debt problems as the recession continues."