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.