UK households are expected to rack up extra unsecured debts of £1,660 this year, largely through credit cards and loans, according to new estimates.

The increase comes as millions of people continue to rely on debt to cover essentials, from food to utility bills, to cope with the cost of living squeeze.

The extra debt, which does not include home loans, represents a rise of 9.4 percent. If the figures prove to be correct this would be the largest annual rise in cash terms since records began…