The number of Brits suffering from debt is expected to soar as the recession leaves more people struggling to meet their repayments as a result of the rise in unemployment.

Although there have been signs to show that the economy may be recovering, the number of Brits being made redundant is growing as businesses have no choice but to lay off staff as a bid to continue fighting the credit crisis.

And with more youths struggling to find jobs, according to recent news, the number of people out of work is expected to soar to a post-war record.

Government data recently revealed that 2.4 million Brits were unemployed in June as the number of people in work dropped by 272,000 in the three months to June - showing the biggest quarterly fall since 1971 when records began.

And according to economists, the growing number of people out of jobs is expected to surpass the 3¼ million mark, going back to the worst years of the 1980's.

Vicky Redwood, economist at Capital Economics stated that the rate of unemployment will continue to worsen even when the economy begins to grow.

She said: "Partly it's because of time lags between firms seeing the economy improving and being certain about the outlook to make the commitment to employ more staff.

It's not just enough for the economy to be expanding again. In the past it has to be growing at around 2.5 per cent for unemployment to come down. And that could be a very long way off."

As a result, the number of Brits defaulting on their loans, overdrafts and credit card repayments is expected to rocket even further.

There has already been the rise in student debt in England.

According recent figures from the Student Loans Company, the number of graduates putting off loan repayments increased in 2008-09 by 160,000 as more graduates struggle to find a well paid job.

Last month, Annabel Brodie-Smith, Communications Director, Association of Investment Companies, said: "Many young people go to university to enjoy the best years of their life, but on graduation find themselves struggling to repay their debt for years."

Wes Streeting, president of the National Union of Students, (NUS) said: "Unfortunately, students are already racking up thousands of pounds of debt, and with graduate job prospects at an all-time low many of them will be unlikely to be able to pay this debt off for years to come."

As a result, with the amount of available jobs plummeting, these graduates may be "the lost generation," stuck in severe debt problems.

But it's not just graduates who are expected to suffer.

According to the Centre for Economics and Business Research (CEBR) think-tank, increasing job cuts may lead to national debt soaring to a shocking £2 trillion.

Last month, the CEBR warned that there may be a "black hole in the public finance" if the UK economy doesn't recover as swiftly as Chancellor Alistair Darling predicted in the Budget in April.

Howard Archer, at IHS Global Insight, said: "Further major fiscal tightening measures will have to be introduced to get the public finances back to a sustainable state over the long term."