DMP, IVA or Consolidation Loan?

Not putting money aside to pay for boiler services may lead to more expenses further down the line, a report says.

While one in 20 households admit to uSwitch.com that they have cancelled a heating cover policy to save money, six in ten say that they did not have cover in the first place.

As such, poor debt management regarding home finances could lead to a costly repair bill should a boiler or heating system break down over the winter months.

Commenting on the findings, Ann Robinson, director of Consumer Policy at uSwitch.com, says: "For most people, sensible cutbacks - such as delaying switching the heating on and turning the temperature down slightly - will help save money without any serious side effects."

While turning the thermostat down may shave some pennies off energy bills, another way to save cash could be to invest in an IVA to organise finances.

Indeed, Fool.co.uk recently reported that those living alone may struggle financially as heating a property costs the same for one person as it does for two or more.

But an IVA - which could reduce the total amount of debt owed - may prevent finances from freezing this holiday season.

Fuel poverty is a rising problem and one which affects 5.4 million households in the UK, it has been noted.

Such news may encourage people to be more careful with their debt management, after National Energy Action (NEA) claims that during 2008, gas prices have risen by 44 per cent, while electricity increased by 23 per cent.

Being fuel poor is a problem that cuts right across society, although families with young children and households with disabled people are just some of the groups at risk, claims Maria Wardrobe, warm homes campaigner for the NEA.

"Energy efficiency is one we can do something about and is a long-term sustainable solution to fuel poverty," she says, although another option people may take could be to address any financial difficulties with an IVA to help sort debt and free up cash.

Meanwhile, the NEA states that the average annual gas bill in the UK is now £817, while the average annual electricity bill stands at £471.

However, as well as being more energy-efficient, households struggling with bills may want to take out an IVA which may provide people with protection from companies owed.

One piece of advice which could help with a household's debt management is that the current economic downturn should result in people checking their financial situation more regularly, it has been claimed.

Individuals should not think that something unexpected like being put out of work will not happen to them, a spokesperson for LV= says, although an IVA could provide a monetary crutch to help people cover outstanding debts if they were made redundant.

"People don't realise what strain it would put them under if they could not meet their regular commitments [from a] lack of income and how much it would affect them," a spokesperson for the financial firm warns.

Moreover, households may find themselves under financial strain quickly, she adds, although an IVA could take some of the pressure off by freezing or reducing interest owed, which may free up some extra money.

Such spare cash may be put to one side after LV= found that 26 per cent of adults in full-time employment admit to having no savings to fall back on.

Furthermore, an IVA could reduce the total amount of money owed, which may further boost the savings of households.

Budgeting for Christmas can actually make people more generous, a sector commentator has claimed.

Saving more can lead to creative debt management solutions, while spending time with loved ones could be the ultimate gift this holiday season, suggests financial expert Jasmine Birtles.

"Taking your grandmother out to the cinema or to a cafe is much more fun and much more appreciated than some stuff you picked up in the shops," she says, although for people who are seriously in debt, an IVA could be one way to ensure that next Christmas is not as frugal.

And budgeting can change the way individuals think about money, Ms Birtles continues, while she has joined with Lloyds TSB to create a spending guide podcast.

Research by the bank found that 77 per cent of people will take advantage of deals, special offers and reward schemes to save on present buying.

But for those whose money problems need more attention, an IVA could be one way to organise finances, which could see the amount of debt owed reduced.

The credit crunch has not stopped the majority of parents investing their Child Trust Fund voucher, it has been noted, which could be positive news for the debt management of households and the financial security of youngsters.

According to The Children's Mutual, 75 per cent of mums and dads have initiated their kids' bank accounts.

Furthermore, getting families engaged with saving is an important lesson for children, David White, the chief executive of The Children's Mutual, says.

"Even in these times of economic difficulty, it is encouraging to see that parents remain committed to saving for their children and view the Child Trust Fund as a crucial part of providing a more stable financial future for them."

Those people who do not wish to cut back on their children's savings during the economic turbulence may want to address any debt problems they have and consider an IVA to organise their finances.

The Treasury has reported that 97 per cent of eligible parents are aware of the Child Trust Fund.

An IVA could see interest on debt frozen or reduced, which may give some adults more time to sort their finances, in order to help provide for their family.