Mick Longfellow is teetering on the edge of financial chaos. A dedicated teacher married to an equally hard-working nurse, living in a modest house in Newcastle in the north-east of England, the pair spent the past decade treating themselves to gadgets, gizmos and home upgrades.

They put in new windows. They bought the biggest television and sound system their living room could accommodate. They changed their cars every year or two. With two children to spoil as well, they were living on credit – lots of it. There were store cards, car loans, personal loans and credit cards.

Now, amid the recession, those lenders want their money back. “The bank just closed down our overdraft. That was the killer blow,” says Mr Longfellow. But with the family's debts running to ￡30,000 ($49,200, €34,600), far more than their annual disposable income, repayment is going to take a very long time.