So the newspapers make grim reading these days. Take the construction industry, where Taylor Wimpey has cut almost a thousand jobs. Or the retail industry: major supermarkets are slashing the price of milk and other items in an attempt to win customers. It sounds like good news for customers, but those reductions have to be paid for somehow, and farmers are worried the big stores will "come looking for farmers to help redress the balance", in the words of National Dairy Board Chairman Gwyn Jones.



Whether they're facing lower incomes or actually losing their jobs, many people are finding they can no longer keep up with their debt repayments. When their income doesn't cover expenditure, they need to find some way of raising their income or reducing their monthly outgoings.

It's possible that a debt solution could be the answer - but if so, which one? Debt consolidation loans, debt consolidation mortgages, debt management plans, IVAs (Individual Voluntary Arrangements), Trust Deeds… With so many different kinds of debt help available, it can be hard to understand what they deliver and who they're right for.

So in the vast majority of cases, the first thing someone in debt should do is seek debt advice from a debt professional who can take them through the various options and help them choose the one that's right for them.

For many, the best way forward could well be debt management, which involves renegotiating the repayment terms of their unsecured debts, trying to bring their monthly expenses back in line with their income.

There are two basic forms of debt management: people can either do it themselves or ask a debt management organisation to do it for them. If the negotiations work out, the creditors might agree to accept lower monthly payments, freeze interest and / or waive charges. Of course, making lower payments does mean it'll take them longer to pay the debt off, but it's a good way of helping them stay on top of their debts until their income rises again.

People with 'substantial' debts (around £15,000 or more) may wish to consider an IVA, a debt solution in which creditors agree to write off a portion of the debt if the borrower can pay back the rest over an agreed time period (normally five years). Unlike debt management, an IVA is a legally binding agreement - if the individual and enough of their creditors agree to the terms, they'll be bound by law to live up to this commitment.

Finally, if their debts aren't so significant, there may be no need for an actual debt solution at all. Even when their income drops, many people find they can still stay on top of their debts with the right debt advice - how to budget more effectively, for example, or how to prioritise and cut down on non-essential spending. Again, the key thing is to start by talking to a professional debt adviser.