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Borrowers approaching retirement owe four times more in debts than ten years ago, according to a report.

The study, from Barclays and Help the Aged, found one in four people approaching state retirement age have outstanding consumer credit commitments - and owe four times as much as their counterparts did ten years ago.

David Sinclair, Help the Aged head of policy, said: "This report shows there are some worrying trends in credit usage that could represent a debt crisis for those coming up to retirement.

"We know from working with older people suffering from chronic debt problems that even owing a relatively small amount of money can cause untold misery for those living on a fixed income."

The report found half of households headed by someone in their 50s, one in eight over 60s (over 1.5 million) and four per cent of people aged 80-84 (about 60,000) are still repaying a mortgage.

In addition, arrears on credit commitments are most common among people in their 50s and 60, but among those aged 70 or over, utility bills are the main area of financial difficulty.

Utility bills have soared in recent months and have been cited as the main cause of inflation, which now stands at 2.5 per cent, half a percentage point above the government-set target.