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.