More than a third of all adults are only a month away from financial hardship, a study from credit agency Callcredit has revealed.

Their report shows that 40 per cent of the UK’s working population could not survive for more than a month on savings alone. The most at risk are those aged between 25 and 34, with 53 per cent unable to cope solely on savings.

Shockingly, one in twenty people are spending over 50pc of their wages on unsecured debts, which has more than doubled compared to September 2007 figures.

Its findings also highlighted that one in ten adults can no longer afford to save, and have actually started dipping into savings to get by each month – with 18-24′s most likely (14 per cent) to raid their savings for monthly outgoings.

Callcredit’s Owen Roberts says: “These findings are a stark illustration of how the credit crunch is already affecting consumers, it’s clear that the rising cost of everyday living is having an immediate impact on our ability to save.

“Many of the UK’s workforce are at what could be described as a financial tipping point where just one unexpected unfortunate incident could have dire financial consequences.

Chiltern’s Nathan Gladwell says: “If people are concerned about their debt levels they should speak to an independent organisation, such as Chiltern, to work out the best way forward.

“We can contact all of their creditors on their behalf – which can be a timely exercise – and then negotiate payments to more affordable levels.”