Research by price comparison website Money Supermarket found people in the UK are increasingly relying on taking credit from one source in order to pay down debt from another.

It said around 4% of people fall back on credit to pay for their mortgage or rent when payments are due.

Almost two-fifths of adults in some form of debt admitted they rely on unsecured credit in order to get by each day.

An estimated 33 million adults have access to unsecured borrowing like overdrafts, credit cards and other types of loan – representing 66% of the total adult population.

Of these, 13 million (25%) said they would have to take on more debt over the course of the year.

This compares with 9 million a year ago, suggesting the moderate improvements to Britain’s economic outlook are yet to filter through to ordinary people.

Young people aged between 18 and 34 year old were the most likely to use such loans, with 58% admitting they need credit to cover their costs.

Kevin Mountford, head of banking at Money Supermarket, said people had to try avoid getting into a debt spiral.

“While inflation is at an all-time low, and UK debt is expected to fall next year, there is still a long way to go before many consumers are out of trouble,” he said.

“It’s important that those relying on credit keep in control of the situation, so their debt doesn’t spiral out of control. Simply working out a realistic monthly budget and cutting out unnecessary expenditure should be the first step.

“Consumers should also ensure they have the most suitable financial product to get them back to black. For example, consolidating several balances onto a credit card that charges zero per cent on balance transfers will help cut out any extra costs if they can pay the balance back in time. If this is going to be difficult, then a low rate credit card or a low rate loan are other options.”