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    As people find it harder to borrow, there will be an increase in the numbers turning to higher cost credit, an expert has warned.

    Chris Tapp, director of Credit Action, said the economy will slow over the rest of the year and this is likely to reduce borrowing levels generally.

    However he warned that as banks and credit cards become choosier about the consumers they are prepared to lend to, people "are forced to look elsewhere for higher cost alternatives, if they really do need to borrow".

    Recently, Citizens Advice warned that Britons are increasingly concerned about their debt levels, citing a rise in the number of people seeking help at its bureaux.

    It revealed that debt is the main subject on which its experts now offer advice, with one in three enquiries relating to financial problems.

    The charity warned that "many hundreds of thousands of people" are finding it hard to meet their day-to-day living expenses.

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