People may be increasingly turning to payday loans in a bid to avoid insolvency.

This is according to research conducted by business recovery trade body R3, which found 45 per cent are struggling to make it through to their payday.

It was also discovered a new group of "zombie" debtors has formed - those who manage by only paying the interest they owe, rather than money off the total amount.

One in six individuals polled by the organisation were found to be in this position and president Frances Coulson said this is a "troubling" statistic.

"'Hanging on’ each month simply cannot be maintained forever. This group will have very few options should interest rates rise or their circumstances change," she said.

Yvonne Goodwin, managing director of Yvonne Goodwin Wealth Management, recently urged people to take control of their debt issues sooner rather than later.

She explained the situation will only get worse if individuals ignore the problem.