A study by Durham University has found that the lack of available credit from banks and tumbling property prices will plunge many families into debt.
Their research found that an increasing number were using the funds gained from re-mortgaging to supplement their day-to-day living costs, rather than using the money for home improvements or to pay off existing debts.
Without this more will be forced into debt to pay for everyday expenses, or will need to seek specialist debt advice, as household finances run dry.
One of the many debt solutions available to people struggling with problem debts is a debt management plan – or DMP. These alleviate debt problems by accumulating all debts together into one payment, making finances easier to handle.
Other options may include an IVA or bankruptcy.
As property prices fall further, there is also the growing risk of overstretched homeowners falling into negative equity.