Borrowers struggling with credit card bills, tax self-assessment payment deadlines and rising energy charges have driven a surge in calls to debt companies and money advice charities.

Inquiries to insolvency practitioners have risen by two thirds this month as householders seek a solution to unmangeable bills in an effort to avoid bankruptcy.

Terry Balfour, director of the Individual Voluntary Arrangement (IVA) comparison site, said: “January is the cruellest month when it comes to bills and for many already feeling the pressure of higher mortgage repayments along with the raft of outgoings needed purely to service debt this explains why we are experiencing such a surge in queries for IVAs.

“And with similar reports filtering from the industry about the number of phone calls and emails about debt advice, we predict it will outstrip 2007’s total of 110,000 insolvencies, when £1.3 billion was written off in bad debts as a result of involuntary voluntary arrangements.”

IVAs are popular with some debtors because it allows them to approach their creditors with a plan to restructure their debts by making regular monthly payments over a period of five years after which the debt is classed as settled.

However, charities say that IVAs are only suitable in a limited number of cases and consumers should always seek independent advice.

Moira Haynes, a spokeswoman for Citizens Advice, said: “Citizens Advice Bureaux are dealing with something in the region of more than 1.7 million debt problems a year at the moment. It is an all-year-round problem but we do generally see quite a seasonal peak in the New Year period which can feed through into February.

“However, on the subject of IVAs we would suggest that people need independent advice because although IVAs can be a suitable remedy in some circumstances, these circumstances are limited and are not the right solution for most debt problems.”

Last year the average IVA debtor owed just over £50,000 but his figure is expected to go up during 2008.

It also emerged yesterday that lenders are increasing the cost of borrowing by amounts that far outstrip the Bank of England’s base rate rises. This has made it harder for people to repay their loans.

MoneyExpert.com, the independent price comparison website, says that one in 50 adults — nearly 1 million people — has failed to make a payment on a personal loan in the past six months.

People looking to borrow about £3,000 are the worst off. Research from MoneyExpert found that average rates on £3,000 loans have increased by 2.55 per cent from 12.35 per cent in November 2006 to 14.9 per cent today. Over the same time, the Bank of England base rate has risen from 5 per cent to 5.5 per cent.

Sean Gardner, chief executive of MoneyExpert.com, said: “With the cost of living on the increase the obvious thing to do for anyone feeling the strain is to borrow money to tide themselves over.

“But people who want to take out a loan to consolidate debts or to make a large purchase must be wary of the overall cost. A set of monthly payments may seem manageable but you always end up repaying much more than you borrow. The golden rule is only borrow what you are certain you can afford to repay.”

Lenders have adopted tougher criteria on loan applications since the credit crunch last year. Some, including GE Money and Leeds Building Society, have pulled out of the unsecured loans market entirely.