A leading debt management firm, which makes money by consolidating the debts of thousands of consumers, has warned that Britain could be facing a "credit-fuelled economic crisis".

Baines & Ernst, which handles £1 billion of debt for more than 50,000 clients, said consumers were now finding it "too easy" to borrow beyond their means.

A Mori survey of 1,000 of its customers, who all approached the company after over-stretching on borrowing from sources such as bank loans and credit cards, found that 95 per cent believed credit was now too easy to get.

Eight out of ten also believed the Government should legislate to make credit more difficult to obtain.

Baines & Ernst said it had noticed a "striking change" in the social profile of debtors during the past four years and a sharp increase in the levels of debt.

It said that in 1997, when its records began, the average customer had a debt of under £10,000. The figure had now almost doubled to £19,238.

The average income has risen in the four years from £16,800 to £20,400.