The country is likely to be divided into a nation of savers and those in debt, it has been claimed.

Some people will continue to rely on credit to sustain their living, said David Kuo, director at the Motley Fool, while some will struggle to even be granted access to the funds they need.

"What we are seeing at the moment is banks are reluctant to lend money to people. We see this month on month," he revealed.

Banks are becoming fearful of lending people money as they are uncertain as to whether they will pay it back, Mr Kuo continued, with rising unemployment levels likely to see them defaulting on their debt management.

According to debt statistics released by Credit Action, which were correct in June, total UK personal debt at the end of April stood at £1,459 billion.

The increase has slowed to 1.8 per cent in the last 12 months which equates to an increase of approximately £22.4 billion, with the average household debt in the UK standing at £58,370 including mortgages.