A British resident or business is declared insolvent every five minutes or so, according to an advocacy group.
Credit Action claims that the number of people seeking debt help has increased by more than a third in the past year, 104 properties are repossessed daily and the average household debt is 9,500 pounds, the 'Sky News' reported.
According to Managing Director of Capital Economics Roger Bootle, the era of easy credit is actually over.
"The financial landscape will never be the same again. We have passed through a major event which is on a par of much of what occurred in the 1920s and 30s leading up to the Great Depression.
"We have been through a period when financial markets went bonkers and remarkably the central banks and governments allowed them to and many of us were caught up in this," he said.
According to experts, most people do not realise how much debt they are in. And, even those who know they are in trouble, are often reluctant to seek help. They stress that ignoring debt is the worst thing people can do.
Alex MacDermott, policy officer at Citizens Advice, said: "Come and get advice as early as possible. There are lots of ways we can help. We can make sure you're getting all your benefits and tax credits.
"We would then look at prioritising your debts, so we'd look at making your mortgage payments, your council tax, your fuel payments a top priority to make sure you don't get cut off or evicted from your property."