Growing food, petrol and utility prices have made it hard for many of us in the last few months, and things don’t appear to be getting much easier as winter sets in.

It’s not surprising that growing numbers of us are thinking about our finances as Christmas approaches. And its clear that for some of us, we aren’t worried about what we might spend on presents, but whether we can simply afford to eat or keep warm.

Debt calls on the rise

Debt, concerns most of us and the National Debtline is one of the many debt advice organizations on the front line of the credit crunch.

The scale of the problem facing them is shown by the fact that they estimate their debt advisers will take 200,000 calls this year.

The helpline, which gets one third of its funding from government and the rest from the finance industry, doesn't advertise its services but is listed in telephone directories.

In the three-month period to August, 16% of callers were in arrears on their mortgage, compared with 12% in the same period last year.

The National Debtline offers what advisers call 'assisted self-help'. Advice is free, impartial and not time-limited. Case notes are taken by trained staff and you can ring back. More often than not people do, some as many as 20 times.

Information is vital

Some debt advisers believe that if you present people with suitable debt information, the majority of them can deal with it themselves.  That appears to be borne out by a new survey of clients who have contacted the National Debtline since 2003. 90% who have made new payment arrangements with their lenders have been able to stick to them.

The average level of debt for those of you ringing in with mortgage arrears is between £20,000 and £30,000. Some people owe even more though, as it was revealed that one man owed £255,000 on credit cards. 

So,far most lenders are reticent about coming down heavily on their customers in debt, but debt advisers say that that have begun to see more aggressive behaviour towards those of you heavily in debt. 

Free debt advice

Money Hospital also provides a free debt enquiry service. We have partnered with a number of trustworthy debt specialists, so you should speak free of charge to an independent debt adviser who can provide you with advice and solutions to help you resolve your debt and credit problems.

What you can do

• Complete a budget sheet and prioritise your debts. Reduce payments on credit card debts so you can afford your mortgage payments.
• If your budget sheet shows that you can afford the contractual monthly payments plus a little extra towards your arrears, your mortgage lender should not be able to repossess your property.
• If your budget sheet shows you are still unable to afford contractual monthly payments, try to negotiate with your mortgage lender.
• Are you able to extend the term of your mortgage?
• Are you able to refinance to a cheaper mortgage? Although there are not as many products available on the market, if you have a large amount of equity and an excellent credit rating you may still be able to remortgage.

Other sources of free debt advice:

• Citizens Advice: The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers.
• Consumer Credit Counselling Service (CCCS): the impartial finance charity
• Payplan: Debt management and free confidential debt advice on resolving debt problems.
• Shelter:  If you are struggling with the cost of your mortgage or with any other housing problem, call Shelter's free housing advice line on 0808 800 4444. 
• The Financial Services Authority: The industry regulator has a series of practical guides on managing your money. 
• Speak free of charge to an independent debt adviser who can provide you with advice and solutions to help you resolve your debt and credit problems.