Millions of households have no cash to fall back on as the cost of living soars, experts say.
Around nine million people have no savings, and another five million have less than £100 in the bank, according to new research from the Money and Pensions Service (MaPS).
This means around a quarter of adults living have no financial safety net to cope with the rising cost of living or unexpected bills - leaving many with no option but to get into debt.
However, the figures also reveal that many people are already finding this difficult.
Among the 79% of UK residents who use credit, two in five (43%) are now anxious about how much they owe.
Over a third (35%) are worried about the number of different debts they have.
MaPS said 81% of people still avoid discussing their finances.
Asked why, the most common responses were ‘not wanting to be judged’ (21%), ‘fear of burdening others’ (19%) and ‘shame or embarrassment’ (17%).
MaPS chief executive Caroline Siarkiewicz said: “Millions of people find it a challenge to save and this leaves them vulnerable when sudden expenditure items arise. When you add in the anxiety that they feel with their credit commitments, the weight of that worry can quickly become overwhelming.
"By dealing with the problem head on, people can discover just how helpful free debt advice can be and see the importance of talking to their creditors early. They can also begin to find a way forward, no matter how difficult their situation might feel.
“Free help and guidance on how to do all of this is available via our MoneyHelper service and I’d urge everyone who needs it to get in touch today.”
The Bank of England is also now warning the country could face its longest recession on record, piling more misery onto struggling Brits.
The base rate was increased last week by 0.75 percentage points - up from 2.25%. It marks the biggest single rate increase since 1989, and means interest rates remain at a 14-year high.
Today is also the eighth time in a row the Bank of England has decided to increase its base rate. Interest rates were at just 0.1% a year ago.
The base rate affects is important because it feeds into how much banks charge you to borrow - when interest rates are higher, borrowing becomes more expensive.
Millions of homeowners will find their mortgage goes up as a result of rising interest rates. Savings rates should go up as well, although most banks have been slow to pass on increases.
The Bank is raising interest rates to try and cool soaring inflation. The idea is that by raising interest rates, households will spend less and this should mean inflation will drop.
Consumer Price Index (CPI) inflation in the UK is currently at a 40-year-high of 10.1%.
