Credit card debt in Britain will continue to worsen, with a wave of payment defaults from customers, according to a report by the International Monetary Fund (IMF).

The IMF predicts Britain, which has the highest number of credit card borrowers in Europe, would suffer from much of the £1.5bn of consumer debt that it predicts will not be repaid across the continent.

As unemployment and the number of personal insolvencies continue to rise, analysts expect a wave of defaults on credit card debts, personal loans and other unsecured consumer borrowings.

The number of personal insolvencies reached 29,774 in the first quarter of 2009, and analysts expect this to continues to rise.

The IMF predicts the “crisis” would mirror debt problems already being felt in America, where it expects around 14 per cent of the country’s £1.16bn credit card debt to go unpaid this year.

Debt advice organisations have also reported an increase in the number of enquiries for debt management services.

Ivan Cooper, Chairman at leading debt management firm Chiltern, said: “We have seen a sharp rise in the number of enquiries from people struggling with their consumer debts since the start of the economic downturn.

“We are also seeing more people enquire that are struggling to maintain their commitments following unemployment or from reduced wages brought about by a drop in working hours.”

Britain’s biggest credit card lender, Barclays, reported earlier this year that overdue payments or defaults had risen in the first three months of this year.