The last few months have been particularly difficult for a lot of consumers. Many people have been hit hard by the recession, which was brought on by the global economic down-turn, and many have simply been swamped by their debts. There has never been a time when so many people owed so much money to the banks and, as a result, debt advice providers have found themselves extremely busy.

The cause of the problem, more often than not, has been irresponsible lending by the banks in conjunction with out of control spending by the consumers. The worst culprit, in the credit agreement stakes, has to be credit card debt where many consumers have run up massive debts, on multiple cards, in an effort to chase the dream of a better lifestyle. A lifestyle where everyone drives a new car, goes on exotic foreign holidays every year, watches Big Brother and Britain’s Got Talent on a 52” plasma TV, and eats out every other night.

The credit crunch has brought with it a whole heap of wake up calls, and the “spend it like Beckham” has had to stop. Unemployment is about the only thing that is booming right now, and is expected to peak at a massive 3 million. House prices have fallen through the floor, leaving many thousands of individuals in the negative equity trap, and to cap it all, economic experts are predicting that the recession could go on for a good while longer yet.

For people with severe debt problems, trying to keep the mortgage up to date has got to be the top priority, and this is where they can benefit from sound debt advice. There are debt solutions available that can gather together all of their unsecured debts into a greatly reduced payment, thereby leaving the homeowner with enough disposable income to keep the mortgage payments up to date.

The most common solution is a Debt Management Plan as it fits the needs of most over-committed individuals. For consumers with bigger borrowings, an IVA or a Trust Deed may be more appropriate. There are several organisations that can offer free debt advice, and for IVA advice it is required that you deal with a licensed Insolvency Practitioner. If you are worried about loosing your home because you are trying to juggle too many debts, then you need help now, don’t leave it too late.