January is the busiest time of year for companies and charities offering advice on debt or helping with debt management schemes. And 2008 is expected to be even worse than previous years. Why? The UK is feeling the shockwaves of the global credit crunch. It's harder to take out loans (if you're looking for a consolidation loan for example) as a way of finding debt management solutions because lenders have cracked down on their lending criteria. For many homeowners, their fixed rate contracts have come to an end and they're facing up to £200 on top of their previous mortgage repayments. Many are living month to month with no safety nets, and it doesn't take much to push them into difficult debt – a big wedding, Christmas festivities, a summer holiday, a burst water pipe. Debt management solutions can help.

Debt management for a brighter future

But although the financial outlook looks grim, with the right planning and debt management schemes, you can stop falling deeper into debt. The Financial Services Authority has asked banks and lenders to treat their customers sympathetically as they face rising mortgage repayments and risk repossession. Some customers will be unable to avoid bankruptcy, repossession and risk becoming homeless. But adopting a debt management scheme before debt spirals out of hand can help you re-take control of your finances and your future.

Seek professional debt management advice

One in four of us fear our borrowing is unmanageable or will become unmanageable soon. With a third of people going into debt every Christmas, you can still move forwards into the New Year by making inroads into your existing debt with a comprehensive debt management scheme. As well as looking at professional debt management advice that could steer you into remortgaging for example, you can reduce your existing debt too by reducing your Christmas costs and ensuring you don't end up paying for one day for the rest of the year.

As well as implementing a debt management plan, cut down on Christmas costs by:

• Shopping online – it's often cheaper and you can also search for discount online vouchers to use in the High Street
• Use comparative price check websites that can direct you to the cheapest retailer
• Don't go crazy in the supermarket – Christmas day is just one day, don't over shop and stick to own brands rather than be lured by expensive ones.
• Shop around for your utilities, you could save money on your bills
• Switching off the TV when its on stand-by and flicking off unused lights all adds up

You can also cut down on Christmas costs agreeing with your friends and family on a budget, so nobody spends more than five pounds on each person. Or if you do want to spend more, find ways to make up the money such as giving up your New Year to baby-sit for cash.

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0870 977 8100 or fill in our online enquiry form.