Confidence among British consumers has dipped in recent weeks as debt problems mount up for millions of people, it has emerged.

Fears about the state of the overall economy and personal finances have seen the GfK NOP’s consumer confidence barometer fall by five points to its lowest level since November 1992.

According to the research firm, food price rises, a housing market slowdown and widespread predictions of a recession have seen Britons become considerably less confident about their ability to spend.

"It will take more than a quarter point reduction in interest rates to alleviate the current gloomy mood of the UK consumer," said Rachael Joy from GfK NOP’s consumer confidence team.

Last week, David Kuo, head of personal finance at Fool.co.uk, said that anyone experiencing debt problems should seek out advice from appropriate sources and avoid the temptation to hide these difficulties and hope for the best.