Market analysts Datamonitor suggest that the average British adult now owes more than £1,100 on their credit card, an increase of around £400 on the 1999 figure.

Britain, a nation with more cards than people, owed a total of £53.5 billion in 2003.

But Datamonitor suggest that the debt will only become a problem when customers are unable to repay it and suggested that the highly competitive market was likely to keep credit card payments affordable.

The market analysts also believe over 90 million cards will be in circulation by 2008.

Kieran Hines, author of the report, said: “This growth in credit card debt will only be of concern if consumers become unable to pay it back.

“The competitiveness of the credit card market will continue to provide consumers with low rate balance transfer options and competitive standard rates, and this will allow the financially aware to keep their interest payments low.”