The situation is looking very gloomy for the unemployed in the UK. There are many thousands of people that are unable to find work, and at the same time are struggling to keep their bills up to date. Over the last few months, free debt advice specialists have seen an increase in the number of out of work people with out of control debt problems.

In many cases, nobody is really to blame. Debts were taken out by consumers that were in full time employment, and could easily maintain the monthly payments. For some of these individuals, unemployment has come like a bolt from the blue, and has been completely unexpected. And in many cases, not being able to get another job is not for the lack of trying, there just are not enough jobs to go around.

The problems began when things seemed rosy, the economy was booming, house prices were going up every month. People become overcommitted with credit card debt, store cards, car HP agreements and excessive mortgages. When the credit crunch arrived, no-one was expecting it and no-one was prepared for the carnage that would follow its arrival. Unemployment has now reached its highest level for many years, and it is expected to keep on rising for the rest of this year. Employment experts are of the opinion that the number of jobless will exceed 3 million before things start to improve.

The only option for many overcommitted individuals is to embark on formal debt solutions such as a Debt Management Programme. A properly managed programme can mean the difference between controlling your finances, and keeping your head above water, and total financial collapse. They can also offer a way to get out of debt without having to declare bankruptcy, give up assets or become homeless.

For individuals that are employed, or self employed, that fall into financial difficulty, another option could be an IVA, or Individual Voluntary Arrangement. An IVA works in a similar way to a Debt Management Programme; however it is set over a fixed period and must be supervised and nominated by a qualified Insolvency Practitioner. It is best to get professional debt advice before any decision is reached.