Borrowers that fall behind in making repayments on their personal loans should be treated more sympathetically by lenders, according to Citizens Advice.

The charity has called for lenders and lending institutions to allow clients in difficulty to negotiate.

A spokesperson said that borrowers can often find that a previously manageable debt becomes a burden when their circumstances changes.

"It can happen very quickly - a divorce, illness or losing a job means that a £300 payment a month suddenly becomes quite a burden," she said.

Accountancy firm PricewaterhouseCoopers recently told a recent BBC investigation into debt that loan repayments now take up around 19 per cent of the average UK household's disposable income.

It has also emerged today that homebuyers - and in particular first-time buyers - are being forced to borrow more money to cope with rising house prices.

According to figures released by centre-right thinktank Policy Exchange, the average first-time buyer is paying £1,458 in stamp duty.

This is in stark contrast to a decade ago, when the average first-time buyer did not pay any stamp duty at all.

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