Have you been refused credit? It is not so long ago that the banks were handing out loans hand over fist, but now they have started to get worried about mounting bad debts and are beginning to rein in their lending.

According to statistics released earlier this month by debt charity Credit Action, the total of personal debt in the UK has risen to £1,228 billion, with the average household debt standing at £8,577, excluding mortgages.

At the same time, Bank of England figures reveal that overall credit card lending increased by £0.2 billion in July, compared with a £0.1 billion increase the previous month.

The Government’s third Tackling Over-Indebtedness annual report has just outlined its latest objectives for the credit industry and consumer groups to help people struggling with debts.

This, added to a change in the rules on bankruptcy, which makes it easier for people to walk away from their debts, leaving their lenders empty-handed, has put pressure on the banks to curb their previous largesse.