Debt management `can help people tackle money problems`

Careful debt management can help consumers tackle their personal finance problems, it has been suggested.

According to Carl Kroger, sales and marketing director from the Relax Group, "putting pen to paper" is the first step in taking control of debt problems.

The expert went on to say that people should record everything that goes out of their accounts each month, including bills, direct debits, mortgage payments, rent and overdraft charges.

Mr Kroger added: "If outgoings are higher than the money coming in, there is a debt problem.

"If the debt isn`t too large and is easily managed, begin by cutting down on luxuries and non-essential purchases. More drastic action may be required for larger debt."

Meanwhile, research published recently by Direct Line suggested that 22 per cent of consumers questioned would default on a paid-for TV subscription if they were in financial difficulty, compared with five per cent who would default on home insurance.