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Borrowers can take simple steps to help themselves cope with the credit crunch, according to the Council of Mortgage Lenders, Citizens Advice and Shelter.

Due to increases in the cost of energy and food, by 17 per cent and 12 per cent respectively, life is harder for the 1.4m borrowers coming off cheaper, fixed-rate mortgages this year.

But there are steps people can take to tackle the problems. Talking to lenders, advance planning and dealing with debt are some of the actions recommended.

David Harker, chief executive of Citizens Advice, said: "We would urge anyone who is falling behind with payments on a mortgage or secured loan to speak to their lender and seek free, confidential, independent advice straightaway."

"Getting advice, even at a late stage, can help the majority of people come to a workable agreement with their mortgage lender and can make all the difference between saving or losing their home.”

Adam Sampson, chief executive of Shelter, said: "With rising household bills and escalating food costs, it is understandable that many people are struggling with their finances. Help is out there but it is vital people do not hide away from their problems and seek free independent advice as soon as possible."

Richard Morea of London & Country Mortgages agreed: "The main thing is not to run away from the problem, as things inevitably get worse."

He added: "It is hard to do, but people need to trim their expenditure. They may not like having to shop at Aldi instead of Waitrose, but if it helps them meet their financial commitments, it is well worth it."