Average individual debt has increased to over £5,300, an increase of £1,000 from the £4,300 owed in 2023, Tesco Bank found.

The bank’s research revealed that those aged between 35 to 54 are the most indebted, with the "squeezed middle" juggling debts worth an average of nearly £6,500 a year.

Furthermore, the findings showed that men had just over £800 more debt than women.

Tesco Bank revealed that unsecured debts are increasingly common. These are loans or other debt that don’t require collateral, such as a car or a home, to be used as security by the lender.

Credit cards are also the most popular form of debt for 30% of people, followed by buy-now-pay-later schemes (9%), car loans (8%), using an overdraft (7%) and payday loans (4%).

Tesco Bank said that approaching the end of the year, many people would be setting their money and savings goals for next year and are looking for ways to get more in control of their finances.

Borrow director at Tesco Bank, Mamta Shanbhag, said: "With living costs remaining high, having some form of debt is a reality for many households. Indeed, we found people currently have at least £1,000 more debt than they did at this point last year.

"But that’s not to say that having some form of credit is a bad idea – especially if you need to spread the cost of a big purchase or want to build up your credit score. It’s important though that any debt is managed responsibly, including making regular repayments on time, only spending what you can afford to pay back, and clearing your balance as soon as possible. There may also be some benefits and rewards to consider with certain types of borrowing.

"With many preparing for increased spending in the coming weeks, addressing any money concerns now is the best way to put your best financial foot forward for 2025."

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