The Consumer Credit Counselling Service (CCCS) has warned that middle earning families are likely to be pushed in to debt by rising interest rates, fewer tax credits and high tax thresholds.
The believe that families with lots of children will suffer the most as homeowners look set set face higher unsecured debts that those who rent.
The charity made their feelings known following their annual snapshot that sees them analyse 470,000 households with debt problems.
The results also showed that other statistics suggesting that people were reducing their debt levels were true, and that despite personal inc=solvencies being at an all time high, average debt levels are indeed falling.
The CCCS also found that a typical person who came to the charity for advice was aged 42, although the 50-59 year old bracket owed the most money.
They added that the average homeowner clients had debts of more than £30,000 on top of their mortgage, and that a 2% rise in interest rates would increase their repayments by £307 a month, putting them at risk.
Chairman of the CCCS Lord Stevenson said, “The picture is undoubtedly bleak and it seems likely that many more families, including better-off ones, will be increasingly prone to over-indebtedness in the months ahead.”
“It is also not a uniform picture across the country: public sector cuts in terms of jobs, spending and benefits will weigh disproportionately on certain groups of people.
“The incidence of unmanageable debt bears down harder on specific parts of the country, such as London and Yorkshire.”