How the Hello! factor is driving millions into debt as they copy celebrity covergirls

The result, say experts, is that a third of us have nothing left in our bank accounts at the end of the month.

They estimate that 4.8million adults spend more than they earn every month, while a further nine million just break even when their next paycheque arrives.

Millions are in the grip of a "spendemic", piling up debts on their credit cards and overdrafts, according to a report published today by the price comparison website Uswitch.com.

Ann Robinson, director of consumer policy at Uswitch, said: "We are caught in a spiral of conspicuous consumption. It is no longer enough to keep up with the Joneses.

"Instead we want to live like our favourite celebrities. But it is clear our salaries cannot keep up with our 'Hello! magazine lifestyles'."

The report reveals a huge rise in the amount that people spend on 'non-essential' items, which includes restaurants, hotels, jewellery and holidays.

Over the last decade, a typical person's spending on these items has jumped 65 per cent to £865 every month. The monthly spend used to be just £524 in 1997.

One of the major reasons for the plunge in people's finances is the amount that they are forced to spend to keep away the bailiffs.

Of the three categories of monthly spending - essential, non-essential and debt repayment - it is the last one that has risen most significantly.

Since 1997, the average amount spent every month on debt repayments has soared 104 per cent to £356. As an average figure, this means some people spend nothing on debt repayments, but others spend thousands of pounds.

Debt experts say many people 'rob Peter to pay Paul', taking out expensive personal loans just to be able to pay credit card bills.

The number of credit cards has doubled in a decade to 71 million, with many people carrying more than three in their wallet.

A typical person now spends £1 in £7 on debt repayments, compared to £1 in £10 a decade ago.

One of the biggest reasons for the rise in debt repayments is also the larger mortgages needed to buy a home at today's high prices.

A typical mortgage taken out to buy a home is more than £150,000, with many people borrowing double this amount.

Each month, the average amount spent on paying the interest on a mortgage is £209, according to Uswitch.com.

The report comes as the financial squeeze on hard-pressed families gets even tighter.

Basic costs of living, such as the weekly food shop and energy bills, have jumped with inflation-busting rises of up to 27 per cent.

Overall, the report found the average adult has disposable income of £2,607, but spends £2,450 a month. This leaves them with just £157 left over each month.