Nearly nine million adults are "financially fragile" and risk being overstretched in the cost-of-living crisis, a report has warned.
Record levels of unsecured debt and climbing interest rates are piling pressure on household budgets, according to data by accountancy giant PwC and credit app TotallyMoney.
They found 8.9 million adults showing signs their finances are teetering on the brink - meaning they may need to use their overdraft to cover everyday spending and essentials, such as food shopping.
They may also struggle to keep up with repayments on their borrowing next year.
The study estimates unsecured debt, such as personal loans, stands at more than £400billion - equivalent to a record high £16,200 for each UK household.
PwC UK's leader of financial services Isabelle Jenkins said: "The results are startling and it's clear that for UK households struggling with post-Christmas debt the outlook may feel challenging.
"For most borrowers, credit performs an important function, smoothing income and expenditure, which, if affordable, can be beneficial.
"However, unaffordable lending and borrowing can cause real harm to individuals and society, and vulnerable consumers can be disproportionately affected."
The report found that in the past year alone, unsecured household debt grew by more than £1,000, or an annual growth rate of 7.2% to £16,200.
This is up from close to £10,000 by the end of 2016.
Simon Westcott, PwC UK's strategy and UK financial services lead, said: "The rising levels of unsecured debt plus UK households' vulnerability to interest rises could leave consumers over-stretched.”
* Follow Mirror Politics on Snapchat , Tiktok , Twitter and Facebook .
