The research, from banking giant Santander, showed that payday loans and other forms of high interest borrowing are being used by homes across the country, in a bid to raise enough cash to pay for essentials.
According to Santander, 7.5 million people use their credit cards every month to pay for household costs, as they simply do not have enough money coming in to pay for their bills. Around a million further individuals are forced to turn to payday lenders, paying out an eye-watering 4000 APR typically, for the privilege of being able to get their hands on cash quickly.
The total amount borrowed every month is the equivalent of £259 per person, a total of £3.6 million.
Younger people are more likely to borrow money to pay for their essentials, with 38% of those aged between 18 and 34 resorting to credit. The figure drops to 30% for those aged 35-54 and lower still to 17% for individuals aged 55 or over.
Londoners are the most frequent borrowers, with one in three relying on credit every month on average. The West Midlands, South West and the North East were the regions less reliant on borrowing money, with just 22% on average obtaining finance each month.
The Santander study showed that although as many as 28% of households investigated ways to raise more cash each month to pay their bills, less than one in three considered switching suppliers to save money. And just a quarter bother to organise their finances to make sure their direct debits and standing orders come out after they get paid.