DMP, IVA or Consolidation Loan?

One important lesson to be learned in debt management may be how the Welfare Reform Act could benefit a household's income, after a financial firm has claimed that people are unaware of the monetary help they can receive.

According to LV=, Britons feel that the government legislation does not affect them, although individuals may be surprised at what help is at hand.

"There is a low level of understanding and I'm not sure how many people realise how important the changes are to them," a spokesperson for the company says.

Furthermore, the act "has brought about quite significant changes to payments people might be able to receive".

Research by the firm revealed that 30 per cent of people questioned admit that they could not survive for more than two months on the savings that they have, should they find themselves out of full-time work.

But some individuals may want to consider trust deeds, which could see interest charges frozen.

As such, households may have their financial burden relieved slightly, as debt may be paid back without the fear of rising interest fees.

Consumers looking to reduce their outgoings may find it difficult, after it has been claimed that annual percentage rates and transfer fees on credit cards have increased.

In news which may be important to the debt management of households, interest-free days have also been reduced, while cash per annum rates have shot up, according to Michelle Slade, analyst at Moneyfacts.co.uk.

"Many consumers will make a new year's resolution to sort out their finances. Debt transfers are one way to ensure you are paying off more of your debt, rather than just the interest," she says.

However, for people looking to freeze the interest owed on debt, a trust deed may be one way to pay off money owed and eventually free up cash.

Credit Action recently reported that credit may be difficult for some people to get hold of and many are turning to pawn brokers.

But for people who wish to seek the advice of a professional, a trust deed may be one option suggested, where the freezing of debt could mean that money owed is easier to pay off, therefore reducing the burden.

Families are taking action to reign in their spending and become more financially responsible, it has been noted, which could be a good start for individuals considering debt management solutions.

A survey by Legal & General found that buying cheaper food and keeping fuel bills down were money-saving techniques favoured by 65 per cent of people.

Half of those questioned said that they have cut back on eating out, while the fourth most popular way to save money was to switch to cheaper utility and energy providers, the survey revealed.

"With Christmas and its associated costs only a few months away it's interesting to see that, across the board, Brits are meeting the challenge head-on with savvy, cost-cutting initiatives," stated Garry Skelton, marketing director at Legal & General's insurance business.

Meanwhile, those living in Northern Scotland were the most likely to cut down to one family car, although such individuals may want to look into trust deeds to reduce debt.

Furthermore, uSwitch.com has said that winter bills could be cut if people used energy-efficient light bulbs and insulated their homes.

Trust deeds may be a wise debt management solution and could see individuals making one monthly payment while interest may be frozen.

Britons are planning to work longer hours over the next six months in order to ease the financial stress on households during the credit crunch, according to a study.

A quarter of adults will work more hours, Friends Provident says, while one in eight plan to take a second job, although it could be said there are more efficient debt management solutions available to people.

Speaking on the National Stress Awareness Day (November 5th), Mark Jones, head of protection at Friends Provident, says: "These are tense times and working longer - often for little or no financial reward - will add to people's stress levels."

In addition, stress can have "serious implications on long-term health", although Britons may want to ease the pressure by researching trust deeds, which may be available to those living in Scotland.

The Stress Management Society says that stress can be linked to a variety of problems including, but not limited to, heart attacks, skin disorders, high blood pressure and migraines.

But people may want to ease money worries with a trust deed, which could see a percentage of a debt being written off.

As energy bill prices continue to rise, millions of people in Britain have missed electricity and gas payments over the past six months, according to a report, which could have consequences for those worried about debt management.

The number of those who have missed electricity payments rose from 1.31 million to 1.96 million, while those who defaulted on gas payments increased from 1.16 million to 1.61 million, Money Expert claims.

"Households are clearly feeling the strain with energy bills and other household bills going unpaid. The fear must be that the number of missed bills will only rise as the full impact of energy price rises hits home in the winter," comments Sean Gardner, director of MoneyExpert.com.

But residents living in Scotland may want to research trust deeds, which could demand that those on the scheme make just one payment a month.

Allan Asher, the former Energywatch chief executive, told BBC File on 4 that yearly energy bills of £1,200 could be cut by more than a third if competition became more robust, the BBC reports.

Those interested in a trust deed may want to know that interest rates may be frozen and a percentage of the debt could be written off.