Dr Jim Bolton from the college explained: "During our lives ... one-in-two adults with debt have a mental health problem, so it increases the risk of mental health problems."
He added that while the recession continues to bite and people are still without jobs, they are at a greater risk of developing poor mental health.
According to a survey conducted by the charity Mind, half of those polled admitted to feeling suicidal after a call from bailiffs, who may have been collecting debts from outstanding energy bills.
Some 96 per cent of people reported increased anxiety after a call from the bailiff, while 87 per cent said they experienced feelings of depression.
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