Almost 6.5 million people have had to consolidate their debts in the last three years to keep debts under control, according to research from financial website MoneyExpert.
Its findings showed that 14 per cent of people have moved all of their financial commitments to one lender in the past three years, with a large increase in the number of secured loan applications.
The young were most likely to be affected, with 23 per cent of 25 to 34 year olds moving all of their borrowing to one lender.
People with debts of £20,000 or more were found most likely to secure debts against their homes, and the site reported there has been an 85 per cent increase in the number of homeowner loan applications from their website in the last six months.
Sean Gardner, Chief Executive of MoneyExpert.com, says: “Anyone who is juggling a range of debts with money owed on credit cards, store cards and loans should be acting to get their debts under control.
Chiltern’s Nathan Gladwell says: “Consolidating debts can improve people’s current situation in the short-term, but it’s important borrowers don’t overstretch themselves and they consider all alternatives.
“Consolidation loans may be cheaper than most credit cards, but people should think seriously before securing a loan against their home.
“It’s always best to receive independent advice covering all of the options available to you before agreeing to commit to a loan that could mean you lose your home if things take a turn for the worse.”