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People are using the opportunity of a recession to get to grips with their debt management, one sector organisation suggests.

Individuals who draw up a realistic debt management solution are more likely to be supported by lenders looking to get Britons back on their feet again, claims Ian Boden-Smyth, money advice coordinator for the UK Insolvency Helpline.

Banks are more likely to take this approach in an effort to kickstart the economy and help get people financially on their feet again.

As such, those who take debt management action now may find that they are on a more stable footing for when the economic storm clouds pass over, he continues.

"People are looking at this credit crunch period as a time for getting out of debt," Mr Boden-Smyth asserts.

Residents in Scotland could find that a trust deed freezes all interest charges on money they owe.

This could be a good move after uSwitch.com recently revealed that borrowers currently fork out around £98 billion in interest each year.

Over 7,500 people living in Scotland took out protected trust deeds in 2007, one newspaper claims.

This figure looks to get worst amid the doom and gloom in the media about a worsening economy and debt management woes, the Herald reports.

And in the three weeks before last Christmas, figures show that there were 657 protected trust deeds taken out by cash-strapped consumers in Scotland, the resource continues.

Speaking to the newspaper about the findings, Bryan Jackson, corporate recovery partner with PKF in Glasgow, says: "This is a clear indication that, over the last few years, there has been a degree of unreality about the way people have financed their lives."

People over-extended themselves on the premise that the value of their house would always remain high, he adds.

The rise of individuals turning to trust deeds could be partly attributed to the drop in consumer confidence which Nationwide discovered, with 19 per cent of UK adults believing that their income will fall over the next 12 months.

Despite many households struggling with their debt management, charities have reported that people dug deep into their pockets last Christmas in order to donate some money.

Findings from the Institute of Fundraising and the Charities Aid Foundation reveal that 29 per cent of such organisations claim that their festive appeals raised more than they did in 2007.

A poll of 35 charities discovered that over half of Christmas fundraising projects in 2008 raised as much or more than the previous year's efforts.

"This shows that the UK is still one of the most generous nations in the world and many people are continuing to think of others even though they may have less money themselves," claims John Low, chief executive officer of the Charities Aid Foundation .

And while donating cash may be commended, so too could effective money management, which could be done through a trust deed.

Organising finances this way could see a percentage of debt written off - which may free up some cash to get 2009 on track.

With the current low interest rate of 1.5 per cent, the amount of debt owed may also ease off, although a trust deed could freeze interest.

Households looking for ways to improve their debt management skills may find that they have a helping hand today (December 8th) from the Bank of England.

It is widely predicted that a cut to the two per cent interest rate could be announced today, after a decision by the monetary policy committee.

As such, dropping the rate would see it at its lowest level in the history of the Bank, although it could be good news for those who owe money.

Lower interest rates may mean that debt does not climb as high as it previously did, although a trust deed could see interest charges frozen.

Indeed, Lloyds TSB and the Cheltenham & Gloucester (C&G) have announced that it will match their standard variable mortgage rates to any base cut.

"As soon as we know the impact of the base rate decision on wholesale funding costs we will launch our new fixed and tracker rates," states marketing director of C&G Stephen Noakes.

Furthermore, a cut could help boost the confidence of people, after Nationwide revealed that consumer certainty dropped by four points during December.

Falling costs in the UK should enable people to save that little bit extra of cash, it has been suggested.

A decline in price increases for petrol, food and utility bills should result in households with more disposable income, a spokesperson for NS&I claims.

However, consumers need to get themselves in the mindset to put that extra money aside in a savings account, he continues.

As such, people who require help when it comes to their finances may want to follow a formal debt repayment plan such as a trust deed, which may see interest charges frozen, potentially freeing up more income.

Commenting on Britons' ability to stash their cash, he says: "A really worrying fact is that about 12 per cent of people are saying they either didn't have the time, or didn't see the need to save."

The amount of disposable income that households saved rather than spent stood at -1.1 per cent in the first quarter of 2008, rising to 0.4 per cent in the second quarter.

But with careful debt management through a trust deed, people may find that their finances are placed on a more stable footing for 2009.