People have been warned that missing occasional bills will not overly damage their credit record but that failing to make important payments such as the mortgage can "look bad".

The comments come from financial resource AWD Moneyextra, which has urged consumers not to miss paying bills frequently as this can damage their credit rating.

"Missing a mortgage payment looks bad because they are mainly paid on standing order or direct debit and it looks you are in financial hot water," it continued.

For those Britons who are unable to afford their debt repayments and their mortgage, it could seem as though bankruptcy looms.

One possible option, however, is an individual voluntary arrangement (IVA), a form of insolvency which ensures debtors repay their loans at level which means they can afford their household bills.

Unlike bankruptcy, it allows borrowers to keep important possessions such as their home and allows them to become debt-free within a set period, usually five years.