The introduction of more secure "chip and PIN" credit and debit cards, hailed by some as the biggest shake-up in the way Britons shop since decimalisation, could lead to even more goods being bought on credit.

Research published today suggests that the new technology could fuel yet further British consumers’ seemingly insatiable appetite for debt.

Up to three million people who do not have a credit card will apply for one when the new system is in place because of the security it affords from fraudsters, according to a survey commissioned by MasterCard, the financial services provider.

Policy makers have warned that personal debt is reaching potentially dangerous levels in the UK. There were more individual insolvencies declared in England and Wales in the last quarter of 2003 than at any stage over the previous decade, according to official figures released last week.

During the year to the end of February an average of £9.2 billion a month was spent on credit cards - compared with £8.6 billion the previous year, an increase of 7.3 per cent, according to Apacs, the payment clearing services body.

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