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As many as one in ten households in the UK can't afford all their living costs and face going into debt just to get by.

These are the findings of a Lloyds Bank survey of 2000 of their current account customers. Published last month, the banks survey found that there was a significant fall in the likelihood of its account holders saving money once bills have been paid.

Although over the last 12 months incomes on average have increased, high levels of inflation meant that many people's spending power has in fact fallen. The Lloyds report shows that household incomes have in real terms fallen by 1% on average. At the same time spending on essential items such as food, petrol and utility bills has risen by 3.5% compared to last year.

Commenting on the findings Lloyds chief economist Patrick Foley said 'It is clear that over the last few months initial signs of an improvement in spending power has stalled. Whilst the squeeze on consumers is not as intense as earlier in the year, flat spending power after inflation is still uncommonly weak and explains the high degree of consumer pessimism.'

With people struggling just to pay their bills the possibility of getting into debt is much more likely. If these financial problems become too much then Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVAs) are two possible solutions.