The house price boom witnessed in the UK during most of the past decade was a disaster for the health of the economy as a whole, according to one expert.

Paul Holmes, chief executive of the first-time buyer solutions company Firstrung, insists that only a particular sector of the population benefited from the property boom, while millions of people have been left with serious debt management and money problems

"Middle England" saw the value of its assets increase dramatically in recent years but a generation of would-be first-time buyers have been left with a serious struggle to get a foot on the property ladder, Mr Holmes maintains.

"For first time buyers it was not good news that property prices were going up, it was a bloody disaster," he said.

"The quicker society wakes up to the fact…then all the better."

A recent study by personal finance firm Fool.co.uk showed that mortgage-related debt problems among young British homeowners have left almost one in four worried about the prospect of negative equity.

The level of financial service switching activity among British consumers is falling, recent research has demonstrated.

According to figures from MoneyExpert.com, the overall number of deals being swapped across the country was 17 per cent lower in the first three months of this year compared to the same period in 2007.

The fall in switching activity has been attributed in part to the reduction in the number of mortgage deals on the market since the summer of last year.

Additionally, while many people are looking to take control of their debt management and money problems, credit arrangements are reported to have become less attractive to would-be borrowers over the course of 2008.

"The mortgage market has been the focus of concern this year as lenders have scrapped deals and made mortgage availability the big issue," explained MoneyExpert.com’s founder and chief executive Sean Gardner.

"With fewer deals on offer and stricter criteria it is no surprise that fewer people are moving."

Meanwhile, the mental health charity Mind has called on lenders to behave more responsibly towards customers who are struggling with problem debt.

With many UK car-owners struggling to meet the costs of rising fuel prices, swiftcover has offered advice on how to reduce motoring expenditure.

Among its recommendations is to avoid sharp accelerating and braking, which are said to increase fuel consumption by as much as 30 per cent.

Lightening the load and watching average speeds are also identified as ways of making motors go further for less.

The firm reports that speeds of 55 to 65 miles per hour deliver greatest fuel efficiency.

Hybrid cars are also said to be a smart move for those looking to make a saving, with congestion charge exemptions making them particularly useful for those living in London.

Swiftcover explains that hybrids commonly use two power sources: electric motors and a petrol-driven engine.

"The motor powers the car at low speeds, and the petrol engine kicks in when more power is needed," the group comments.

Increased costs of running a vehicle may compound problems for those who are looking to reduce debt.

A recent report by the Financial Times has suggested that a growing number of middle-income households are experiencing debt trouble and are turning to individual voluntary arrangements (IVAs) to get finances back on track.

British banks are appealing the decision of the High Court which stated that unauthorised overdraft charges could be assessed for fairness, according to reports.

The landmark test case has been described as having a potentially huge impact on consumers, with financial research firm defaqto asserting that the stakes for both sides are extremely high.

However, with the banks appealing the decision, there is likely to be a lengthy judicial process seen before a final result is attained.

Following a Court of Appeal hearing, the case could go on to the House of Lords or even the European Court of Justice, the group notes.

"If the original judgement is ultimately upheld and a substantive hearing rules that the charges are unfairly high the most likely outcome is that a cap will be placed on the charges," said David Black, principal consultant of banking for Defaqto.

For those looking to clear debts, a reduction in overdraft charges may come as a welcome relief.

The High Court decision to assess the charges for fairness was made late last month.

Responding to a recent study, Norwich Building Society has urged people not to keep cash at home.

According to the firm, one in ten feel more comfortable keeping cash in their home than placing it in the hands of a bank.

However, Steve Urwin, senior marketing executive at the firm, said that as well as the likelihood of money being stolen from the home, people could see the value of their finances decrease as it fails to earn interest.

For people who keep substantial sums of money at home, being burgled may put considerable strain on their finances, making bill payments and debt reduction more difficult.

"The biggest risk to savers is that cash on its own does not earn any interest. Therefore, the effects of inflation will erode the relative value of cash over a period of time," said Mr Urwin.

Reports from the firm suggest that people are becoming increasingly cautious with their savings than they were 12 months ago.

Millions of Britons are preparing to tighten their belt and cut back on expenditure, foregoing luxury items in an effort to save money, it has been suggested.

According to Alliance & Leicester, nearly 35 million Britons have made some form of financial cutback to meet the demands of various living costs such as food expenditure, energy bills or debt reduction.

More than a third (34 per cent) of respondents said that they expect their disposable income to be reduced in the coming six months, with 79 per cent attributing this expected drop to the rising costs of food, energy and consumer goods.

Clothes shopping was said to be the habit most people were looking to cut back on, while some 36 per cent of people said that they expected to socialise less in the coming months.

Emma Walkley, current account manager at Alliance & Leicester, said: "many of us are feeling the pinch and looking for ways to cut back. The good news is that people are taking action now and looking at ways of making their money go further."

In March, Alliance & Leicester noted that debt reduction and other financial matters were becoming a prominent topic of conversation among friends, families and colleagues.

Those people planning a holiday away over the bank holiday weekend are likely to be hit by the inflated costs of fuel in the UK, according to the AA.

Statistics from the group suggest that British travellers will spend an additional £110 million on fuel while on a break this weekend when compared to figures from last year.

The findings many recent reports of rising fuel costs, debt troubles and an increased number of people resorting to individual voluntary arrangements to meet the costs of living expenses.

It is estimated that the average journey undertaken this weekend is likely to be 304 miles, with the costs of travelling this distance reported to have risen 29 per cent.

Meanwhile, those driving unleaded vehicles can expect to see their journey cost around 17 per cent more.

Elsewhere, insurance firm esure has predicted that more than 14.6 million people will take to the roads this coming weekend.

Statistics suggest that there has been a 77 per cent increase in the number of people filing for bankruptcy in Sunderland.

According to accounting company KPMG, there were 172 debtor bankruptcies recorded in the first three months of this year, up from 97 logged between October and December of 2007.

Wearside also saw the highest jump of any area in the north-east, while Newcastle had the second highest figures, with a 31 per cent increase recorded.

Paul Bateman, KPMG’s head of personal insolvency in the north of England, said: "Consumers are seeing the cost of their mortgages increase, fuel costs continue to go up and now food prices are rising in a manner not seen for years."

He added that for those struggling with debt, seeking professional advice should be the first port of call, the Sunderland Echo reports.

Elsewhere, the Financial Times has noted that recent statistics have suggested that a growing number of people are turning to individual voluntary arrangements (IVAs) via online portals.

Following its national Mind Week campaign aiming to raise awareness of the effect that problem debt can have on mental wellbeing, UK charity Mind has suggested that lenders should address debt more responsibly.

Commenting recently, a spokesperson for the group said that for some people, being chased by collectors can be a harrowing experience.

More than nine out of ten (91 per cent) of respondents to a recent study carried out by the charity said that debt troubles had made their mental health worse.

The representative said that a common reaction to debt troubles is to withdraw from it rather than seeking help or pursuing measures such as individual voluntary arrangements (IVAs).

"We are calling on banks to keep to the Money Advice Liaison Group guidelines about how to treat people who have problem debt and are experiencing mental health problems," she said.

The Money Advice Liaison Group enforces a code of practice to ensure that lenders treat those with debt trouble appropriately and fairly.

Government backing given to troubled lender Northern Rock has pushed national net debt to 43.1 per cent of gross domestic product, Office for National Statistics (ONS) figures show.

In March, national debt stood at 37.1 per cent when costs associated with the Northern Rock bailout were excluded.

The government’s ceiling for public debt stands at 40 per cent, as set out by the Treasury’s sustainable investment rules, the BBC reports.

Chancellor of the exchequer Alistair Darling has responded by stating that the impact on public debt will be temporary and is the result of exceptional circumstances.

"This year is likely to be a tough one for public finances," said David Page, an economist at Investec.

Levels of individual debt have also risen sharply in recent months, with the Ministry of Justice identifying Yorkshire as the region with the highest level of bankruptcy and individual voluntary arrangement (IVA) applications during the first quarter of 2008.