The impact of debt on mental health should be a priority for financial institutions, it has been suggested.

A spokesperson for mental health charity Mind said banks ought to stick to guidelines outlined by the Money Advice Liaison Group, which offers suggestions on how to treat individuals with debt problems who are experiencing mental health issues.

She explained that this code of practice outlines the appropriate treatment in instances such as missed payments where people suffer from anxiety and depression.

Mind research found that two-thirds of respondents in a survey about problem debt blamed mental health problems for their financial situation.

The spokesperson said that many people become overwhelmed when creditors ring them up all the time and they receive letters from a number of debt collectors.

“Some people will find that they just withdraw from it rather than being able to tackle it because they don’t have the support it takes to face everything that is coming through all at once,” she added.

Mind is currently working with the Financial Services Authority to find solutions to this issue, which may include workshops on debt management and other financial advice.

Many Britons are taking on extra credit card debt on Saturdays, with new research suggesting consumers typically spend more than £549,000 on these days during their life.

According to the Co-operative Bank, Saturdays see the average British adult spend £175 on food, drink, entertainment, travelling and clothes, with many taking on extra credit card debt to fund their purchases.

Maxine Xodo of the Co-operative Bank warned that Saturday shoppers should consider debt management and budgeting when they splash the cash.

She said many people feel Saturdays are a time for enjoyment, especially since British employees spend longer hours working than most of their European counterparts.

“However, it is important for people to plan ahead with their spending so it doesn’t come as a surprise when their bills come through the door,” Ms Xodo added.

Last month, Abbey claimed that savvy and sensible shopping could save UK households millions a week.

Some £218 million worth of groceries are discarded by consumers every week as they misjudge their needs and food reaches its expiry date.

People who rely on payday loans on a regular basis could have a more serious debt problem, according to an industry commentator.

Beccy Boden Wilks, spokesperson for National Debtline, warned that taking on such debt could be “symptomatic of a serious underlying debt problem”.

She explained that relying on such short-term, high-interest loans could mean the person is over-committed financially and struggling to become debt free.

People who need to use this form of debt are being advised to look at their budget and debt management plans and see why they have to rely on such loans, the spokesperson suggested.

Warning against the spiral of debt, Ms Boden Wilks said: “If you’re paying it back the following month, you’re basically spending your wages before you’ve got them. And the cycle carries on.”

Since September last year, short-term payday loans have seen uptake increase by some 55.4 per cent, according to research by moneysupermarket.com.

Many Brits are feeling the burden of large debts hanging over them, according to a debt expert.

A combination of the credit crunch, increasing fuel and utility bill costs and spiralling food prices are all taking their toll on the British consumer, says Andrew Hagger of Moneynet.co.uk.

He adds that lenders are likely to remain cautious as to who they lend to in the current economic climate and consumers will feel their disposable incomes stretched further in the coming months.

Mr Hagger states: “Life is likely to remain uncomfortable for consumers for many months to come with the increased potential of personal debt levels undoubtedly weighing heavily on the minds of UK lenders.”

According to the most recent debt statistics from Credit Action, total UK personal debt at the end of March amounted to £1.43 billion.

This figure has grown by 8.3 per cent in the 12 last months, an increase of £113 billion.