Demand for debt services among Lloyds Bank customers has jumped by 30 per cent in the first six months of the year, as the cost of living crisis takes its toll.

Research from the bank shows three-quarters of its 26 million UK customers were worried about rising prices and the impact it is having on their savings.

The chief executive of Lloyds, Charlie Nunn, said that customers were working to get a grip on their finances by consolidating their debts.

Nunn added that eight in 10 of its customers have less than £500 of savings in their current and savings accounts.

Lloyds Banking Group is the country's largest mortgage lender. According to its research, 20 per cent of its customers are already cutting back on their discretionary spending to make sure they can cover the cost of essential items.

"Customers are concerned, and they should be," Nunn told the BBC. "About 80 per cent of individuals and UK customers and families have less than £500 worth of savings in their current account and their savings account. They might have money elsewhere but what we can see is less than £500."

Despite the sharp increase in customers dealing with problem debts, Nunn said that only 1% were unable to pay their usual bills.

Meanwhile, Nunn has warned that Britain risks talking itself into a recession.

He said: "I am concerned that we are collectively talking ourselves into the risk of too negative an outlook.

"There are pockets of strength in the economy. There are significant parts of the consumers in the UK who have strength and want to spend and create that demand and we can continue to see opportunities to invest in growth."