The UK has been affected by the economic downturn and financial crises just as much as the rest of the Western world. In 2008 and 2009 the government under PM Gordon Brown intervened to save the Northern Rock Building Society and the RBS and Lloyds/HBOS banking groups from collapse. The new government under David Cameron is now taking strict austerity measures to protect the country’s credit rating and to reduce the budget deficit. Unfortunately this is causing a lot of financial pain, and the real possibility that the economy will drift back into a period of zero or negative growth.

More people than normal are asking for help from charities such as CAB (Citizens Advice Bureau), and the local CAB offices report that many need help with very high levels of personal debt. Other major areas of concern are welfare benefits and housing issues.

Debt problems often come to a head due to a sudden financial shock, such as loss of income due to unemployment or illness. Rising prices (especially fuel and utility bills) may also cause problems as incomes are no longer keeping pace with inflation, and less disposable income is left over for repaying loans and credit card bills.

Although people can become very stressed by debt problems, and it is true that money problems are a major cause of marriage and family breakups, there is free and confidential help available. Ignoring financial problems does not make them go away, and often the best course of action is to face up to the problem, no matter how difficult that sounds.

In all parts of the UK, people can find services which offer confidential, free-of-charge and no-obligation debt advice. These services are provided locally by Citizens Advice Bureaus, which can be found in most towns and cities, and nationally by groups such as CCCS, National Debtline and Payplan.

Trained advisers can help clients identify income, expenses, assets etc and classify debts into priority and non-priority groups. Different solutions can be explored, such as DMPs (Debt Management Plans) and IVAs (Individual Voluntary Arrangements). These arrangements are often acceptable to creditors, and are always based on affordable monthly payments reducing the total amount owed while leaving enough money for all necessary living expenses.