Mint Financial Services has suggested that this should be the first step people take when they decide to wipe out arrears.

Adrian Kidd, spokesperson for the company, commented that he has seen lots of consumers failing to pay off the capital, even when they pick up consolidation loans.

The expert added that excessive credit card use and interest can also result in long-term repercussions aside from debt.

“You can be penalised for applying for a lot of credit in the last 12 to 24 months. Sometimes you can actually be turned down for a mortgage based on that,” he said.

Consumer credit lending reached £214 billion in June 2007, according to money charity Credit Action.

This represents a 5.2 per cent increase on the figure from the same month in 2006.

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