The Pepper Money Specialist Lending Study found that this was an increase from 33 per cent in its previous report.
The report continued that 30 per cent of people with adverse credit have outstanding debts, excluding mortgage and student loans, of more than £5,000.
Nearly one in ten have outstanding debt of over £15,000.
The study continued that 45 per cent of people with adverse credit have upped their use of buy now pay later in the last year, with 17 per cent saying that that it had increased a lot.
Ryan Brailsford (pictured), business development director at Pepper Money, said: “It’s often the case that customers who have a history of adverse credit also have significant balances on unsecured debt. One way to get on top of these debts is by raising capital with a remortgage to pay off the separate balances, consolidating them into additional borrowing secured on their property.
“Restructuring finances in this way requires careful consideration. However, in the right circumstances, it can significantly reduce the monthly cost of servicing that debt, which could prove a vital lifeline for households struggling to make ends meet in the current environment.”
He added: “When it comes to debt consolidation, many lenders will include a maximum debt to income ratio as part of their affordability calculation, which could limit a customer’s ability to raise enough capital to clear their debts.
“However, not all lenders take this approach, and, at Pepper Money, we have no predetermined level of debt. Some lenders will also limit the LTV to which they allow debt consolidation, but again not all lenders, and at Pepper Money, we allow debt consolidation up to maximum LTVs.
“At Pepper Money, we can also offer your customers an enhanced free legals service, covering the cost of legal work required on remortgage applications, including debt consolidation.”