According to one firm of solicitors, many consumers are under-representing the amount that they currently owe to gain access to further credit such as extended overdrafts. Roger Miller, a senior partner at Curtis Solicitors, has told the Herald that borrowers unable to service loans made by banks often have up to ten other loans and credit card debts which they have not divulged to the lender.

Rather than seeking out debt consolidation loans in order to address their current borrowing, such consumers have chosen to sink further into debt by refusing to acknowledge existing borrowing. According to the adviser, other consumers seek out two loans when they only need one, but end up spending the ready money regardless, meaning that they fall further behind on repayments. As a result, Mr Miller asserted, any accusation that banks are entirely at fault for irresponsible lending is unrealistic.

"I have not seen in the documentation a bank or lender making an advance with the knowledge or belief that a loan will be defaulted upon. It must surely be wrong to say that a lender has forced money upon an unwilling borrower," he asserted.

The news follows some media reports questioning the decisions of some lenders providing finance to the sub-prime market - those judged least able to service their debts - which has led to the much publicised credit crunch in the US and UK markets.

An expert in the law surrounding debt recovery, the solicitor has stated that in his experience when loans are provided by major lenders there is "never any suggestion" that the borrowers will not be able to meet their commitments. Probably a less risky route to follow for those who have built up a number of debts which they are struggling to repay is to investigate debt consolidation loans. By combining debts into a single monthly payment, borrowers can start to regain control over their finances and embark on improving their credit history.

The news may be of particular relevance to Plymouth residents due to recent figures, also in the Herald, which indicated that the city had the highest bankruptcy figures in the UK. Mr Miller advised that anyone looking to undertake further borrowing should be unerringly clear about their true financial position - and that by doing so a positive settlement can be achieved for all concerned.

And it is not only financial institutions that Britons lie to: according to recent research from personal finance advice site fool, as many as one in six are dishonest both to others and to themselves about their debt situation. Furthermore, in an attempt to ignore the reality of their position, around one in ten (12 per cent) leave bank statements and other financial documents unopened.

Head of personal finance at fool David Kuo said that it was a "real shame" that people felt unable to address their personal finances with confidence and added that people should always strive to produce a clear picture of their financial standing, seeking out debt consolidation loans if appropriate.

Meanwhile, Axa has asserted that the regular assessment of personal finances can be helpful in maintaining a clear understanding of how the financial land lies, thereby avoiding getting into untenable debt.