Banks and building societies were writing off almost £40m per day in family debts in the second quarter of the year, according to new figures.

A report from the Bank of England found that lenders wrote off as much as £3.5bn of debt between April and June, equivalent to £38.5million per day, the largest amount on record for a single quarter.

New research has revealed that almost one million people in the UK are struggling with their debt problems alone, with a quarter believing that their debts aren’t big enough to seek help.

Edward Davey, the consumer affairs minister, announced this week that the government are planning to review the away that consumers are granted credit and how they deal with personal debt problems.

Lenders have said that they have seen a rise in the number of home loans in May, as low interest rates continue to attract home movers.

The amount that is being spent repaying home loans is at the lowest level in 35 years and home movers continue to benefit the most from the reduced interest levels, according to the Council of Mortgage Lenders (CML).

There were around 42,000 home loans approved in May, which is 15% higher than the same period last year and is up 2% on April.

New research has revealed that a third of Britons will get into debt problems so that they are able to go on their annual holiday.

According to the study by insurer Bright Grey 32% of people will use credit cards, a travel agent payment plan or by taking out a loan from friends.