You`ll only be able to enter into certain debt solutions (like a debt management plan or IVA (Individual Voluntary Arrangement)) if you and your lenders are satisfied that it`s a good long-term option. Others (such as a debt consolidation loan) are only appropriate for people who are sure they`ll be able to afford the repayments.

However, an IVA is by no means the only option available to people with unmanageable debts - and you should make sure you explore all your options before making any decisions.

This isn`t exclusive to credit card debts, of course - but with an average interest rate of around 18%, credit cards can be a particularly expensive form of debt.

A major advantage of credit cards, though, is that if you repay the balance on time, you`ll never have to pay any interest whatsoever. But if you allow any of that balance to cross over into the next month or beyond, you will be charged interest.

One option for people with high levels of debt may be an IVA (Individual Voluntary Arrangement).

One alternative to bankruptcy is an IVA (Individual Voluntary Arrangement). Many people consider IVAs to be preferable to bankruptcy, although this isn`t the case for everyone.

When it comes to repaying problem debts, establishing which debts are your biggest priorities is important.

It`s important that you repay all your debts, but because some carry a higher risk of serious consequences (such as repossession) if you miss payments, different types of debt must be treated differently - when it comes to certain debt solutions, for example.

Some people may automatically think of bankruptcy in this situation - and in some cases, that may be the best option. However, for many other people, an IVA could be a more appropriate alternative.

That`s why debt advice is important. If you find yourself facing the prospect of repossession, you should contact a debt adviser at the earliest opportunity.

However, there may be another option: an IVA (Individual Voluntary Arrangement).

To begin with, many Britons will not consider skipping their annual break in order to save money, as it is, to them, a necessity rather than a luxury.

Dermot Blastland, managing director of TUI Travel UK, has said that most customers would not skip their main foreign holiday even if they needed to reduce their expenditure.

How an IVA can help

An IVA is a debt solution aimed at people who cannot see any realistic way of repaying their debts within a reasonable period of time.

Having plenty of friends around you is great, but let`s face it - it`s expensive. Most social activities seem to cost money these days, and that can mean that the more sociable you are, the more pressure there is on your finances.

However, there are a few things you can do to cut back without completely severing ties with your nearest and dearest.

Each debt solution is designed to help people in different situations, so it`s always worth speaking with a professional debt adviser to help establish which one is right for you.

Lenders have become more cautious about offering loans than in recent years, and this is one reason they have tightened their lending criteria.

However, it is still very much possible to get a debt consolidation loan - it may just take a little longer to find the right deal. Speaking with a professional loans adviser can make things a lot easier.

Bailiffs, County Court Judgments (CCJs), Charging Orders, Attachments of Earnings - depending on the type of debt you`re struggling with, your lenders may decide that taking legal action is the best way of recovering the money you owe.

Because credit cards carry a high interest rate - the average credit card interest rate is currently around 18% - the debt can grow much more quickly than less expensive forms of credit, and low minimum monthly repayments can make this situation worse.