Claims that more Brits are in control of their debts and that consumer confidence is rising have been slammed by MP Stella Creasy.

Lloyds Bank claimed yesterday that there has been a rise in the number of people who are able to keep up with their debt payments by three percent from the first quarter.

The second Lloyds Bank Lending Report said people surveyed continue to feel ‘upbeat’ when it comes to the future of their finances.

Fewer people have missed payments compared to the beginning of the year, with only one in ten (11%) saying that they had missed at least one payment in the last 12 months, the bank claimed.

Walthamstow MP Stella Creasy who is campaigning against poverty in Britain hit back.

"It’s not surprising that to a bank making money giving out loans this is a happy time - what they fail to recognise is that their research also shows a whopping 58 per cent increase in people seeking out a loan in the last three months alone, for which one in three are to consolidate existing debts,” she said.

“This is now generation debt- a nation with multiple credit card bills, personal loans and too much month at the end of their money as a matter of course.

“With interest rates expected to go up, just a 2 per cent increase would mean families having to find an extra £1,000 each year to cover these rates- money most don't have so threatening our recovery and their financial prospects.

“The Government might be happy to go along with banks pretending this is all ok but I beg to differ- we need to wake up to the personal debt crisis growing in Britain's economy and take action rather than saying it’s all going swimmingly."

Shadow minister and Labour Deputy Leadership hopeful Stella Creasy is touring Britain to hear about the impact of personal debt on local communities and calling for “immediate plan of action”.