An expert has warned consumers that the UK economy is still suffering the effects of the global credit crunch and warned "higher-risk borrowers" that credit conditions may be tighter once the market has recovered.

Financial advice website Fool.co.uk warns people with debt repayments of more than 55 per cent of their household income and net worth of less than 33 per cent of their income are likely to fall into arrears.

This means a borrower with two-thirds of their mortgage outstanding and no savings should "consider themselves in jeopardy", it claims.

David Kuo, head of personal finance at Fool.co.uk, said: "The two thresholds provide a handy guide for consumers to see if they are sitting ducks. And by ensuring that we stay comfortably within them, we should be better placed to face unexpected shocks."

This could cause concern to borrowers with debt repayments and a mortgage as bankruptcy can lead to the loss of their home.

One possible route out of debt-danger is an individual voluntary arrangement which allows borrowers to make monthly repayments at a level they can afford and to retain assets such as the family home.