DMP, IVA or Consolidation Loan?

The debt management of households could be set back by a lack of mathematical knowledge, if the comments of one organisation are to be believed.

According to Whizz.com, money worries can be caused by households not realising the consequences that borrowing can bring, although a financial expert may flag up such concerns through a debt management plan.

Furthermore, people "bury their head in the sand" when it comes to poor monetary management, says Richard Marett, chief executive officer of the website.

"It's a combination of not understanding the repercussions of borrowing money at a high interest rate and not understanding the effects of compound growth, so there's an element of basic mathematics there," he says.

People may also have an attitude of not worrying about problems until later, which may not help their financial situation, Mr Marett adds.

A survey by the Confederation of British Industry has found that 51 per cent of employers are unhappy with the basic literacy and numeracy levels of school leavers.

However, a debt management plan - which may see interest on money owed reduced - could take some of the pressure off households while they try to understand how to organise their finances.

Britons are running out of cash before their next pay day arrives, it has been claimed, a problem that could only get worse as Christmas shopping steps up and debt management becomes trickier.

According to research by Abbey, 64 per cent of people have to make sacrifices in the days leading up to their next current account boost, with the average time spent without money standing at five days.

"With disposable income down and Christmas almost upon us, planning your finances carefully has never been more important," says Steve Shore, director of banking at Abbey.

Such organisational skills may involve investing in a debt management plan, which may be overseen by a financial expert, helping households to avoid further money problems this holiday season.

Indeed, a Nationwide survey found that 60 per cent of people questioned admit that they are not putting as much money aside as they should be doing.

But a debt management plan may prevent families from slipping further into the red as it may freeze interest on debt owed, potentially easing some financial pressure.

Men may need to brush up on their debt management skills after it has been revealed that they are less concerned than women about how they fare financially.

According to a survey by Moneywise.co.uk, 25 per cent of males say they are worried about how the credit crunch will affect them, compared to 43 per cent of women.

Commenting on the recession questionnaire, Rachel Lacey from the website, says: "There is a significant contrast between the sexes in the levels of concern felt about finances. Women remain less confident than men about having enough money in retirement."

In addition, 26 per cent of females claim they are confident about how they would financially cope during their retirement, compared to 58 per cent of men, although a debt management plan may help households get organised.

And the battle of the sexes continues after it was reported by Fairinvestment.co.uk that men secretly spend more than women.

But to curb outgoings and provide a more stable financial footing, men and women alike may want to invest in a debt management plan, which could be overseen by a financial expert.

Single men might need to take a look at how they handle their debt management after one sector commentator claimed that couples find it easier to save money than people not in a relationship.

According to David Kuo, head of personal finance at Fool.co.uk, outgoings such as mortgages and rent do not get cheaper depending on how many people live in a home, which therefore may shift the financial burden on to one person's shoulders.

"I think men and women need to go back and have a look at their own finances and identify whether or not they are actually saving money at the moment," Mr Kuo states, although a debt management plan could be one way for people to organise their finances.

However, despite such advice, a study by YouGov for Skipton Building Society found that almost half of Britain's single men thought that being relationship-free was the best way to save money, although a debt management plan could be said to be a more reliable cost-cutting practice.

This financial option could see interest frozen or reduced, which may relieve some money burdens, while extra cash could be freed up to put towards everyday expenditures.

People need to learn to budget better in order to make their disposable income go further, it has been claimed, which could be good advice for households struggling with debt management.

Money has to be made to work harder and although organising finances can be boring, keeping a diary of cash spent can be one way to learn to budget, says Frances Walker, spokesperson from Credit Action.

She adds that everyone at some point has thought "Gosh I got £100 out [of] the money machine on Monday and now its Wednesday and I haven't got any money left and I don't understand where it has all gone".

According to Abbey Credit Cards, ten per cent of Britons are spending 90 per cent of their salary on essentials such as bills and rent, although seeking help from a financial expert may help with this expenditure.

Indeed, they can organise a debt management plan for people which could see repayments spread over a longer period.