10 million people may default on repayments for mortgages, credit cards or personal loans by the end of the year.
A forecast from one of Britain's biggest accountancy firms, says that "the merry-go-round of credit is about to stop", as millions of people realise their take-home pay is not enough to service their debts.
Britain is more indebted than any other country in Europe
According to KPMG, 22 per cent of those adults with debts - equating to 6.6 million - are already finding it difficult to meet their repayments.
However, 35 per cent - or 10.6 million - are worried they will find it even more difficult to pay back their debts in a year.
The figures come from a KPMG survey conducted by YouGov and commissioned by the ITV documentary Repossession,