Past irresponsible lending practices have led to a rising level of UK consumer debt and an increase in the number of people declaring bankruptcy, according to new market research.

An independent survey by Datamonitor showed that consumers are turning to bankruptcy to clear debt as the number of insolvencies has risen by 25 per cent annually since 2001 reaching almost 50,000 last year.

The borrow-and-spend culture has led to the average British adult owing an estimated £4,122 in unsecured personal debt by the end of 2005.

High street banks and credit providers are partly to blame for the increase in the level of debt with more readily-available credit and the relaxing of financial criteria needed to secure credit over the last five years worsening the situation, the report found.

"In previously pursuing aggressive marketing strategies, encouraging customers to take on additional credit and failing to ensure that borrowers can afford repayments, lenders are partly responsible for the current situation of high level of indebtedness," said Karina Purang from Datamonitor.

"They are now facing rising bad debts on past lending decisions, on which they have no control at all."

Banks are now making more use of credit rating agencies and tightening consumer requirements for borrowing in an effort to curb debt levels.