A new report from Standard Life has suggested that there must be "a seismic change in mindset" among Britons if the UK's debt problem is to be resolved.

The firm's study, conducted by the Personal Finance Research Centre, has found that young adults and parents feel pressured to fund their lifestyles via further consumption, with children's needs also adding to the burden.

Housing equity, meanwhile, is seen as the answer to all debt problems even though the housing market is now seeing prices fall.

"A seismic change in mindset is required to begin to unwind the chronic debt issues we face in the UK.  Pinning your hopes on housing equity or thinking that insolvency is the easy way out of debt is financial suicide," warned Standard Life Bank chief executive Anne Gunther.

"Credit is not only freely available but considered a way of financing lifestyles rather than reflecting need.  Rising debt is also becoming a key issue for younger people from primarily reasonably affluent backgrounds," Ms Gunther added.

Halifax reported today that house prices fell by 1.1 per cent in November.

Have you been refused a loan? We can help your consolidate your debts. Leave your details here