Nearly half of Britons have experienced some sort of credit problem, according to new research.

Statistics compiled by LV= show this is the case for 46 per cent of Britons, which equates to around 21 million of the UK’s adult population.

"Our research shows that an unfair credit rating is a common problem for many and more worryingly, identity fraud is likely to rise sharply in the coming years," comments John O’Roarke, managing director of LV= home insurance.

He adds that people are also increasingly more likely to be targeted by fraudsters, which emphasises the need to protect personal information.

Additional findings show that 40 per cent of those targeted by identity fraudsters have been denied a credit card, with eight per cent having to pay legal fees to rectify the problem.

Furthermore, victims are reporting an average cost of £2,100 to clear their name, with 29 per cent revealing they had no idea why they had encountered a problem.

Emma Holyer, a spokeswoman for LV=, recently said that people in this situation may find they are turned down for certain financial products.

She said that people should try to get hold of their credit report in order to pinpoint the problem.

Fraud often thrives during an economic downturn, reveals one expert, with people advised to keep a close eye on their finances.

Neil Munroe, external affairs director for Equifax, says it is not only the occurrence of such crimes which is rising, but also the methods which fraudsters use.

"The figures from Cifas [the UK’s Fraud Prevention Service] do show a slight downward trend but they do not cover all types of identity theft, for example individual credit card transactions," Mr Munroe states.

People become more desperate as their financial circumstances get worse, he continues, with individuals being more tempted by offers to get them more cash.

However, debt management firms are able to help those who are in financial difficulties without the need to resort to fraud.

According to Cifas, in 2008 there was 16 per cent growth in fraud throughout the UK, with criminals turning to the misuse of facility fraud.

Furthermore, there was an increase in the number of successful identity frauds, with Cifas reporting a 5.7 per cent increase during last year.

Students who started university in September 2008 will have debts of around £17,000, which is likely to see an increase this year.

Johnny Rich, editor at Push.co.uk, believes this will rise to around £20,000 for students going to university in the next academic year, with some unlikely to receive any funding from their parents.

"Those who are most challenged by finance are the ones who are most likely to be put off by going to university by the serious debt," he claims.

Mr Rich also believes the issue of finance is one of the deciding factors when people choose whether or not to go to university, with some weighing-up whether it is financially worth it.

The Student Income and Expenditure Survey released by the Department of Innovation, Universities and Skills shows that at the end of their first year of study, students in 2007/08 finished for the summer vacation with around £3,518 in net debt.

It also reported that around one in three students said that the availability of funding and financial support affected their decisions about higher education.

People over the age of 65 are the most likely to be targeted by share fraudsters, a new survey shows.

Statistics compiled by the Financial Services Authority (FSA) suggest that 35 per cent of those targeted by share fraudsters last year were over the age of 65.

Furthermore, 23 per cent of those questioned fear they could also become victims of the scam this year.

Michelle Mitchell, charity director for Age Concern and Help the Aged, said: "All too often older people are the target of scammers and this is why a strategy designed to protect older people is so important.

"Older people have worked a lifetime to save what money they have and to see that money stolen is simply unacceptable."

Additional statistics show that nearly half of people do not feel they have sufficient knowledge to be able to protect themselves from fraud, while 41 per cent fail to realise they could have their identity stolen from personal details stored in driving licences and passports.

Unisys Security Index recently discovered that adults in the UK are most likely to worry about, fraudulent use of their credit and debit cards, identity theft and national security.

Users of the Egg credit card will soon find that the minimum cash withdrawal fee has increased.

The provider is imposing a minimum withdrawal fee of £5, marking a £2 increase on current levels, which will come into effect on May 28th.

Customers will be expected to either pay this charge or three per cent of the total – whichever works out greater.

It is believed that the measures are aimed at deterring people who make small withdrawals on their credit cards.

CreditAction announced last month that total consumer credit lending to individuals at the end of January 2009 was £233 billion.

Total lending in January 2009 grew by £1.1 billion; secured lending grew by £1.9 billion in the month; consumer credit lending grew by £0.3 billion, it also found.

Throughout January 2009, Britain’s personal debt increased by £1 million every 40.6 minutes, whereas in January 2008 it increased by £1 million every 5.3 minutes.

CreditAction also reveals that the average interest paid by each household on their total debt is approximately £3,124 each year, which may lead them to seek debt management advice.

Charges to withdraw cash with a credit card are on the increase, it has been revealed.

New findings from uSwitch.com show users of the Egg credit card should use it with caution, as the minimum fee looks set to increase by £2 or three per cent – whichever is greater.

Louise Bond, personal finance manager at the website, says: "We strongly advise customers not to use this facility on any credit card unless they are really desperate for the cash.

"Interest is applied to credit card cash withdrawals from the day they are made and the APR is generally far higher than that applied to purchases."

Over the last two years, uSwitch.com reports that the per annum rate applied to cash withdrawals has risen by 3.05 per cent, with fees varying across providers.

In the instance of Egg, the interest rate will apply to the debt on the credit card from the day on which the withdrawal is made.

Earlier this week, Lord Oakeshott from the Liberal Democrats said that credit card providers must stop "spanking" their customers.

The levels of debt announced by Alistair Darling in his Budget are higher than suggested, it is claimed.

Michael Baxter, economist at Defaqto, says some respite may be seen if the interest on repaying the debt is low.

"What really counts is not necessarily the level of debt but the cost of repaying the debt," he continues.

Mr Baxter believes that there are various economic predictions based on Mr Darling’s own ideas, with not all of them spelling good news for the country’s economy and its people.

"The chances are he will be wrong and that the debt will be quite a lot higher than 79 per cent of gross domestic product (GDP) and that will be quite worrying," he adds.

Alistair Darling admitted that the UK debt could peak at 79 per cent of GDP in 2013-14 and predicted that the economy will begin to recover by the end of this year.

This statement has been contradicted by a number of economists, including the International Monetary Fund.

Credit card providers are out of touch with their customers when it comes to squeezing money out of them, it is claimed.

New research from Which? shows that 28 of the most prominent card providers had increased interest rates or other such charges.

Furthermore, it suggests the number of days people have to repay their debts has been reduced, as has the length of the interest-free period.

"They need to make credit cheaper and their charges more transparent and fair, rather than making it harder than ever for people to make ends meet and pay back their debts," says Martyn Hocking, editor of Which? Money.

He adds that with interest rates so low, credit card providers have the opportunity to "enter the real world", but are instead opting to put more pressure on consumers.

Britons are needlessly paying out more than £9 billion pounds in credit card interest each year according to research from Abbey published last month.

It discovered that one in five Britons with credit card debt are planning to transfer their outstanding balance over the next few months to take advantage of a zero per cent deal.

It is the nature of the credit card market that there will always be a wide range of products for people to choose from, reveals one expert.

Responding to a recent Which? report, which suggested that card providers were facing their customers with unnecessary costs, Paul Rodford, head of policy at the UK Cards Association, says several features have been overlooked.

He continues: "Principally they erroneously suggest a direct link between the base rate and APR, which has never been the case.

"It’s a fact that the average APR has consistently dropped over the last 14 years, often at times when the base rate has increased."

He adds that the current average APR is still below the 1995 peak and takes into account charges, fees and interest rates.

Furthermore, it reflects what Mr Rodford describes as the "open-ended line of unsecured credit and the possibility of bad debt".

The Which? Money report suggests that credit card rates have increased by an average of 0.5 per cent, with Mint, NatWest and Royal Bank of Scotland making rises of four per cent.

Students are spending more and receiving increased levels of financial support, a study has found, which may lead them to seek debt management advice later in life.

The report, compiled by the Institute for Employment Studies, suggests students finish their first year with an average debt of £3,500, with a decline also seen in the amount holding down part-time jobs to supplement their income.

Claire Johnson, Principal Research Fellow at the Institute for Employment Studies and one of the report authors, comments: "Government grants and loans are playing a more important role for students studying under the new financial support system.

Since the previous study, which was carried out in 2004/05, additional levels of student support have been introduced, including tuition fee loans of up to £3,225.

However, the government states that these loans do not have to be repaid until after the student has left university and earns more than £15,000.

Yesterday (April 22nd), Universities UK responded to the Budget, welcoming its emphasis on training and apprenticeships.