Many Britons are turning to high-interest loans to make ends meet in a worsening financial environment, new statistics have shown.

According to an ITN news report broadcast today (Thursday June 19th), new figures show that the credit crunch is forcing many consumers to pursue high-interest lending options such as doorstep and payday loans. Conducted by Equifax on the news agency’s behalf, the consumer survey found that nearly a third (32 per cent) of people who are worried about their credit rating have taken out doorstep loans, while a similar number (31 per cent) have resorted to payday loans to cover monthly costs.

Though Equifax identified these findings as troubling, it expressed greater concern over the fact that 32 per cent of people had considered defaulting on credit card repayment obligations in order to meet monthly mortgage requirements and other costs. The ITN report asserted that these findings demonstrate the willingness of Britons to jeopardise their credit rating and future financial security in an effort to keep their heads above water in today’s gloomy financial climate.

ITN suggested that the lack of confidence in the current financial environment is compounded by recent statistics from the Council of Mortgage Lending which showed that the total number of loan approvals had fallen again.

Neil Munroe, external affairs director for Equifax, said: “Whilst the Bank of England has kept interest rates at five per cent, many lenders are still being cautious and not passing better rates onto their customers. This appears to be affecting both existing and new borrowers. Combined with rising food and oil prices which are also taking their toll on family finances it’s not surprising that our survey shows that consumers are looking at ways to tighten their belts. Women seem to be feeling the credit crunch the most. Just nine per cent of men are seeing a direct impact on their finances, compared to over a quarter (26 per cent) of women.”

In an attempt to weather the financial storm, many consumers expressed a preparedness to cut back on savings and insurance protection. Of the 1,000 people interviewed, nearly a quarter (24 per cent) said they would opt for lower life cover if they had to make drastic savings, while 29 per cent said they would cut back on pension contributions.

For those who are struggling with problematic debt, Equifax advised speaking to lenders quickly to avoid trouble in the future. Getting hold of their credit report was also recommended in order to allow people to take control of their debt of their levels. For those looking to get their finances back on track, biggest debts should be tackled first, consumers were told.

Taking out a debt consolidation loan may also prove an effective option for those struggling with repayments. By entering into this type of arrangement, people may be able to spread their debt contributions over a longer period of time, thereby potentially reducing the likelihood of falling further behind as payment demands escalate.

Last month, moneysupermarket also reported on the growing number of people who wererelying on payday loans to meet monthly financial commitments.

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