GETTY The anti-poverty watchdog warned the country is facing a ‘credit crunch’

The charity Which? said the forthcoming credit crunch could bring more problems for thousands of people in Britain’s largest cities who can’t earn enough to pay their bills. They include Tulse Hill, Notting Hill, Hayes and Fitzwilliam in London, Gateshead, Fleetwood in Hertfordshire, Birmingham, Southampton, Newport and Portsmouth. The group warned the government needs to step in to halt a “credit crunch” for the UK’s biggest cities if income inequalities were to be curbed.

The brightest are now moving to the cheapest city Kevin McCloud, Which?

Kevin McCloud, Which?’s executive director of consumer affairs, said: “The bright are now moving to the cheapest city in the country, but the poorest are still being squeezed. “People can’t afford basic living costs like food and heating bills, and instead of heading to the kind of shops and restaurants they used to enjoy, they have been pulled away by high prices.” Dave Smith, managing director of rating services Findecom, the third-biggest provider of financial ratings, added: “The biggest challenge to consumers is ensuring there is enough competition at the end of a credit contract to ensure consumers have enough to cope with the debt they are carrying.”

GETTY Defaults on credit card payments can be easily avoided using hidden ‘payments charges’