The Bank of England’s Monetary Policy Committee (MPC) has opted to keep the interest rate at 0.5 per cent and has also pledged more money for its asset purchase programme.

As some stabilisation is seen in the main UK export markets, the MPC still believes the financial circumstances of the country remain uncertain.

"The pace of contraction has moderated and business surveys suggest that the trough in output is close at hand," the bank said.

It also acknowledged that the recession had been worse than initially thought, although credit conditions remain constrained, meaning lending to businesses is still difficult.

The Royal Institution of Chartered Surveyors responded to the decision by saying that the housing market had also shown signs of emerging from its depressed state.

It believes the recovery process will be "drawn out", mainly due to the pressures of the availability of credit and the need to boost liquidity.

Earlier this year, David Kuo, director at the MotleyFool, said that people need to prioritise their debts in terms of how much interest they accrue.

Looking at personal finances as well as the family budget can make a real difference to debt management, he added.