Around 30 per cent of people keep financial secrets from their partners, a newly published survey has revealed.

A study by private bank Cater Allen has revealed that 27 per cent of women have lied to their partner about the cost of clothes they have bought, while 28 per cent of men have concealed the price of a gadget.

Richard Dunn, managing director of Cater Allen, said: "While it has traditionally been considered bad manners to talk about money, this research shows that modern Britons are not comfortable with being upfront about their financial affairs too."

A recent study by financial comparison website Fool.co.uk discovered that one in six people have lied about their levels of debt and one in ten cannot bring themselves to open bank statements or other financial documents.

David Kuo, head of personal finance at the website, said discussing finances openly and seeking help and advice is preferable to being chased by creditors.

Britons face higher rates for smaller levels of borrowing, which a new report attributes to the effects of the global credit crunch.

A study by online comparison tool MoneyExpert.com found the average rate for those seeking a £5,000 unsecured loan is 9.5 per cent, but for borrowing of £7,500 the average rate is 7.97 per cent.

Research conducted by the website also showed that 1.91 million people were rejected for loans during the six months to September, compared to 1.39 million during the previous half a year.

Chief executive of MoneyExpert.com Sean Gardner commented: "Borrowers are feeling the pinch with those wanting to borrow less getting squeezed the most."

For some people, the increasingly high cost of their borrowing could motivate them to regain control of their debt.

The government suggests those with problem debt set a budget to cut their spending and look at boosting their income where possible.

For those possibly facing bankruptcy, it suggests consolidation, informal arrangements or individual voluntary arrangements as possible routes out of the red.

Providers sent out more than 300 million unsolicited credit card cheques last year, a new study has revealed.

Credit card cheques have been criticised as costing more than usual borrowing via plastic and can also have handling charges.

They cost consumers £298 million more in charges and interest than standard credit card purchases, a new report by comparison and switching website uSwitch.com has shown.

Mike Naylor, personal finance expert at the website, expressed concern that the unsolicited cheques show some providers are not committed to responsible lending.

He said the danger is that people already at risk of over-indebtedness are being targeted "and the ‘convenience’ of these cheques, coupled with the manner in which they are marketed by the credit card companies, could push them over the edge".

Statistics compiled by financial advice charity Credit Action show that total personal debt in Britain at the end of September was £1,380 billion.

Money worries are a major cause of stress and missed work days, a report has argued.

Insurance provider AXA has claimed that if employers provided useful financial advice to their staff, both could benefit.

"Money is one of the major causes of stress for adults and as such it is a major cause of employee absenteeism, costing UK plc around £9.6 billion," it reports.

The insurer made its comments following a meeting of industry heads and politicians to discuss how employers can help their staff deal with their finances.

AXA is launching its own initiative for its 12,000 employers called My Budget Day. It will allow all staff one hour of work time to review their finances.

Earlier this year, price comparison website moneysupermarket.com warned that more than five million Britons believe they will always have debt.

It warned that debt had become far more socially acceptable but that many struggle to control their borrowing.

The government urges those with problem debt to take action as soon as possible. Routes out of debt can include seeking help with budgeting, increasing the household income, making informal agreements with creditors and individual voluntary arrangements.

The credit squeeze is escalating consumer debt and employers should watch their staff for signs of ill health caused by the increased pressure, an expert has said.

Bupa, a provider of private health insurance, has claimed that supporting employees during times of financial crisis can boost their productivity.

Tony Urwin, occupational psychologist and general manager of Bupa Psychological Services, warned debt can impact on an employee’s ability to plan, mix with colleagues and manage their work as the pressure they are under increases their stress levels.

"A person whose financial future is uncertain is highly likely to feel pressurised and unable to cope. Their behaviour is, therefore, likely to be similar to that of someone suffering from extreme stress," he commented.

Recently, Citizens Advice made a further plea to halt "soaring" levels of consumer debt, reporting its bureaux had dealt with 1.7 million problems between 2006 and 2007.

Its director of public policy Teresa Perchard has warned debt is one of the biggest issues facing Britain’s economy.

Homeowners could face the biggest jump in the cost of their fixed-rate mortgages on record, an expert has warned.

George Buckley, an economist with Deutsche Bank, told the Daily Mail those looking to refinance their mortgages could be hit with far greater costs than the last time they fixed their payments.

He said this is a bad time for consumers generally: "Taxes have gone up, confidence has fallen, and people are having to think about putting more money away for their pensions. Growth in incomes is also weak."

For some homeowners already struggling with higher bills and the cost of debt, a jump in the cost of their mortgage could be an increase too far and it could seem likely they will become bankrupt.

However, the government created individual voluntary arrangements (IVAs) to help debtors avoid bankruptcy.

IVAs are a route out of debt which allows the borrower to retain key assets such as the family home.

It is too early to tell if the credit crunch will cause an increase in insolvency, however, it is likely the cost of mortgages will rise for some households, an expert has warned.

James Ketchell, spokesperson for Consumer Credit Counselling Service (CCCS), said it is hard to tell if there will be an increase as it can take time for debt levels to build up to the point where people declare themselves insolvent.

However, he explained: "There is a risk that people on cheap fixed-rate mortgages will in the future be forced onto more expensive products, so they will have to address their spending as a consequence of that."

Rent or mortgage repayments are the most important part of a person’s budget and so their spending will have to be adjusted accordingly, continued Mr Ketchell.

Leisure and spending on luxury items are likely to be the first areas people cut back in, he added.

Government statistics show that last year there were more than 100,000 insolvencies in Britain.

Academics at the University of Edinburgh have created a new method of determining which people are at risk of falling into problem debt, it has been reported.

Scientists at the university’s Credit Research Centre (CRC) have revealed a new method which takes into account wider economic conditions and not just the would-be borrower’s credit history.

Professor Jonathan Crook of the CRC said the tests were particularly useful at predicting debt defaults.

"Higher interest rates, greater unemployment and rising house prices – which have a direct impact on people’s pockets – all result in a higher risk," he warned.

Many borrowers, however, have been lent funds prior to this system and before the credit crunch and may be now finding it hard to meet their repayments.

High interest rates and an increase in the cost of living have caused many debtors to struggle.

One possible way out of debt is an individual voluntary arrangement, an alternative to bankruptcy that can help a person become debt free within a set period of time and allows unaffordable debt to be written off.

Parents should make savings so their children do not have to subsidise them in their old age, an expert has commented.

Grant Hughes, director of investment advice firm Charlwood Leigh, has said people must make savings for their future and arrange a pension.

"Parents should be saving so that their children aren’t left to pay for them and their children should be taught to do the same thing," he said.

However, for some people making savings is not possible as they are struggling to keep up repayments on their borrowing.

Those keen to escape debt and begin a more positive financial future could consider an individual voluntary arrangement (IVA) as a route out of debt.

IVAs are intended to be an alternative to bankruptcy and allow the borrower to become debt free within a set period of time, often five years.

They are agreed in court and can allow unaffordable debt to be written off, with tax breaks given to the company to compensate for any losses.

An expert has warned that an increasing number of loan providers are withdrawing their products from the market.

Lisa Taylor, a press officer with the financial advice website Moneyfacts.co.uk, said rates have been rising for "some months" and competition has put increased pressure on providers’ margins.

An increase in bad debt is also partly to blame, she continued.

"But the credit crunch seems to be the final nail in the coffin, as lenders continue to raise rates but more surprisingly withdraw their products all together," added Ms Taylor.

For some borrowers, an increase in rates could cause their debt to become unmanageable as they struggle to meet increased repayments.

There are many options open to those with problematic debt such as seeking help with budgeting, informal agreements and individual voluntary arrangements (IVAs).

However, a recent survey by Chiltern revealed the average amount of time it takes to repay borrowing through an informal debt management plan is 12 years and two months.

An IVA can set a borrower debt free within five years.