Many of the country's debt problems could have been avoided if people had more savings behind them, according to James Falla.

Mr Falla, director of debt counselling service Thomas Charles & Co, explained that this is particularly the case with people expressing concern that there are no cheap rates on mortgages at the moment.

"If people had some savings behind them, they may be in a position now to buy some time when their mortgage went up, until a better deal came along," he claimed.

Mr Falla expressed concern with the lack of savings habit in the UK, adding: "People aren't saving for a rainy day."

It is very important for young people to begin putting money away to avoid future debt problems, he said.

His comments follow research by CSV which found that 48 per cent of survey respondents aged between 16 and 25 regard debt as one of their biggest fears for the future.

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