DMP, IVA or Consolidation Loan?

A third of UK households are paying up to £1,200 more on everyday spending than they were this time last year, a survey reveals, which could be a scenario many people are currently finding themselves in while looking for a suitable debt management solution.

While 24 per cent of those questioned by American Express say they are paying up to £50 more each month, 19 per cent claim that they are spending up to £150 more, an annual increase of between £1,212 and £1,800, according to the credit card company.

"Each British household is paying out thousands of pounds a year on debit cards for everyday items such as supermarket shopping and petrol," Tom Allder, vice-president of UK lending at American Express, claims.

Although considered a final option for managing debt, some people may want to consider bankruptcy after two-thirds tell American Express that they think their financial situation will worsen over the next 12 months.

Once declared bankrupt, a person may not be directly contacted by creditors, who instead could maintain contact via an official receiver appointed by a court, which may be a relief for those struggling with debt and worried about the consequences.