The financial market is more developed in Britain than some countries, claims pfeg.

According to the education charity, the availability of credit cards and loans have led to a "cultural change" in the way people think about money.

Director of policy for pfeg Alastair Mathews explained that instead of saving up for what they want, consumers are tending to buy now and think about the cost later, leading to an increase in debt problems.

He also suggested that the high cost of housing and increase in people attending university have added to the trend of people borrowing more than they can afford.

"We have almost officially built debt in to the system now," said Mr Mathews.

According to Credit Action, total UK personal debt stood at £1,380 billion at the end of September, showing a ten per cent increase over the previous year.

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