Well, there’s not much fun in the world of debt but this interactive debt map from the Centre for Responsible Credit comes close.

In all seriousness, this interactive tool reveals levels of debt throughout the country on a county-by-county and, in some cases, a town-by-town basis. In terms of house repossession, Corby in Northamptonshire, Barking and Dagenham, Newham, Knowsley, Thurrock, Burnley and Luton had the highest proportion of repossession claims per 1,000 of the population in 2009. The tool will also show you figures for personal insolvencies, unemployment rates, bankruptcies, IVA levels, and landlord repossessions (just click on the Data tab followed by CfRC Indicators to see what’s available).

The Centre for Responsible Credit, according to its website, is “an independent, not for profit, research and policy unit.” They publish analysis of policy and regulatory trends and information about the “impacts of debt and financial problems.”

On Friday the Daily Telegraph reported that more than 70 people an hour are being declared insolvent as, in record numbers, we fail to keep on top of our debts. Insolvencies have almost tripled in the past five years.

Yesterday, the Bank of England voted to keep interest rates at the all time low of 0.5%, thus postponing a sharp increase in the number of insolvencies that has been predicted to accompany a rise in interest rates. The full extent of the recession, experts warn, is yet to be realised.

Practice partner at insolvency practitioners, Tomlinsons, said:

“Many people who have been struggling with big debts and reduced income have managed to survive the past two years because of low interest rates. When interest rates rise, and rising inflation suggests that this could happen sooner rather than later, the number of people facing real financial difficulties will spike sharply.”

The action the minority or coalition government takes to bring the deficit under control will be critical.

The sad truth is that, whilst Britain is technically now out of recession, the harsh truth is that many of us are still living beyond our means. History shows us that personal insolvencies will continue their upwards trend for some time after the end of the recession.

If, as predicted, the new government raise taxes and reduce public sector spending, a lot of people will need to take drastic action to resolve their financial problems, such as applying for bankruptcy.

The most recently available individual insolvency figures show a total of 18,256 bankruptcies during January to March 2010, and 11,782 Individual Voluntary Arrangement (IVAs).

An IVA is an arrangement that is entered into with those owed money, while a bankruptcy involves a formal court order where assets are sold to pay off creditors.

Although an alternative to bankruptcy a debt relief order was introduced in April last year, the restrictions limit those eligible to apply – homeowners and anyone with debts above £15,000 are barred. Nevertheless, the final quarter of 2009/2010 showed an increase in debt relief orders from 5348 to 5,644

The expectation is that 150,000 people will be forced into personal insolvency by the end of the year.

Liz Jones of the Daily Mail is famous, or should that be infamous, for washing her dirty laundry in public. Ms Jones updated the nation weekly on the anguish of her failing marriage, following which we were treated to a running commentary on dying pets and hardening hearts as she retreated to Exmoor. However, Ms Jones recent soul-searching is actually heart warming in that it demonstrates the folly of the see it-want it-buy it philosophy that so many of us have subscribed to over the recent years. I’ll let poor Liz tell you her own story; it just might make you feel a little better about your own circumstances.  Entertaining as Ms Jones is, you might find our debt solutions a little more helpful.

When the word ‘overdraft’ appeared in my email inbox on Friday, my heart leapt into my mouth – something it tends to do if anything vaguely financially-orientated makes it through the sand and into my consciousness.

It turned out to be an email from my editor, drawing my attention to a new survey that revealed one in ten people in the UK is always in the red, with more than 38 per cent dipping into the red at least once. Would I like to write about my overdraft? Hmm, would I?

While I have written openly about many shameful, previously hidden aspects of my life (lack of sex, facial hair, grey roots, plastic surgery, OCD), writing about my money worries in a national newspaper has been the most difficult, exposing thing I’ve ever done.

Since publishing on these pages a piece about how I got into debt, everyone I come into contact with, including builders, carpenters and oil delivery men, now demand their money up front. Hotel receptionists, shop assistants, even car park attendants regard me with suspicion. My gardener has gone grey.

But even if you don’t, as I have, broadcast your bankruptcy, those one in ten of us who live in the red and on our nerves exist in a twilight world where every move, every thought, is ruled by how close you are to that magic number: your agreed limit.

Your relationship with your overdraft (is the cash machine cross?) becomes the most important in your life. It is all consuming, a dirty, hungry weight around your neck that saps your strength. It’s like a really bad husband. Or a nasty, painful boil.

• £135m: that’s the daily increase in UK debt
• £21,457 that’s the average household debt (excluding mortgages)
• £58,280 is the average household debt (including mortgages)
• £36,822 is the typical first time buyer deposit (25%)
• £224m: the amount of interest paid in the UK each day
• 125 properties will be repossessed today
• 3,036 people are made redundant each day
• 362 people will be declared insolvent or bankrupt
• 20.8 million plastic transactions will be made today

How sobering is that?

As at the end of July 2009 total UK personal debt stood at £1.457 billion.  Birmingham, Britain’s second city have suffered more than most.  With an economy built largely on manufacturing and the car industry this was inevitable really.  The video tells how ordinary people struggle to cope with UK debt. Our home page will lead you through some of the avenues open to you, and guide you in freeing yourself from credit card debt.   We have also published some useful credit repair tips .  If you’re not a master letter writer, the UK Insolvency Helpline helpfully provide a whole host of example letters for you to personalise.

The first step in bringing your finances under control is to make a list of all your debts. The list should include all companies owed money to (creditors), and the exact amount owed (found on your most recent correspondence/statement).

If any creditors have started legal action, these need to be dealt with as a matter of urgency. If you are unsure how to proceed with this, your local Citizens’ Advice Bureau will be able to assist you.

When you gave finished compiling your list of creditors, you need to sort out the debts into priority and non-priority. Priority debts include:

• Mortgage/rent: if you do not pay any arrears, you may lose your home

• Utilities (gas/electricity/water): if these are not brought up to date, your supply may be cut off

• Council Tax: Although you cannot be imprisoned for council tax arrears in Scotland, the debt can be enforced in other ways – for example, your bank account or salary may be accessed, or your personal possessions seized.

• Fines: You can be sent to prison for non-payment of fines.

• Maintenance: again, you can be sent to prison for failing to keep up with maintenance payments.

• Loans secured on your property: your home could be repossessed if payments are not kept up to date.

• Car loan: if you cannot do without your car, for example if you live in a rural area or are disabled, then your car loan needs to be classed as a priority debt.

• TV Licence: it is a criminal offence to be without a TV licence.

Other, non-priority debts include credit cards, catalogues, unsecured loans, overdrafts, and any hire purchase agreements. These are referred to as ‘non-priority because you cannot be sent to prison for non-payment, but you still need to acknowledge these debts and work out a suitable repayment plan – otherwise, your creditors may take you to court.

The next thing to do is work out a weekly/monthly household budget. Firstly, all money coming into the home needs to be listed, including wages, any benefits, maintenance, and any monies from non dependants. Outgoings then need to be listed, including rent/mortgage, utilities, council tax, food, leisure activities, TV licence, telephone, travel expenses, clothing, and insurance – in short, everything you pay out.

Any money you have left over at the end of the month/week can be used to pay off your debts. You may also be able to generate extra income by claiming benefits you are entitled to, or take on a second job – if you have a spare room, why not rent it out? Any extra money you can put towards your debts means they will be paid off quicker.

If you have trouble drawing up a budget, your local Citizens’ Advice Bureau can assist you – there is also a handy budget sheet to print off on their website.

With priority debts, you need to get in touch with your creditors as soon as possible, explaining your financial situation. It is usually best to write to them, keeping a copy of any letters you send for your records – the Citizens’ advice has a handy section on their website that offers tips on negotiating with creditors.

You need to make an offer of payment to each creditor in order to clear arrears, based on your disposable income (send them a copy of your budgeting sheet).

It is pretty much the same with non-priority debts – if you have any spare money from your budget after negotiating your priority debts, this can go to paying off your non-urgent debt.

Cathie Campbell, Money Advice Manager for Citizens Advice Scotland, says:

“Often people leave problems to last minute, so our key message is to urge them to get in touch with us as early as possible when there is a problem with repayments (such as notice of losing job, an illness affecting future work prospects, or other change in circumstance) and before creditors take any summary action against them.  It’s easier to negotiate and set up a realistic payment plan this way.

Also, the local authorities are becoming more active in taking court action for non payment of council tax, especially against householders with property.

We don’t as a rule class car loans as priority debt, but each individual’s circumstances are taken into account, as outlined above”.

With both priority and non-priority debt, you can negotiate with creditors yourself, or seek the help of the Citizens’ Advice Bureau or debt management company (be careful here, as some do charge a fee for their service, while others, such as Payplan, do not).

Creditors often do accept offers of fair payment, but usually agree to this for a limited period only; say, 6-12 months. After this time, they will want to know whether your situation has improved and you can pay more. However, creditors are not obliged to accept offers of payment and may take legal action against you.

If you do not have enough money to pay anything off your non-priority debts, there are a number of options open to you, ask creditors to wipe off the debt or apply for bankruptcy, especially if you are on a very low income and have no assets – see the Citizens’ Advice website for further details.

On the 6^th April 2009, the Ministry of Justice updated the rules regarding court action: an amendment to the civil procedure rules concerning the pre-action protocol (in relation to disputed debts) states that an early exchange of information should take place before court action is taken

Lenders are obliged to supply sources of debt advice to debtors prior to court proceedings, and if those affected seek such advice from agencies such as the Citizens’ Advice Bureau, they are entitled to 30 days’ grace from companies chasing debt.

The rules regarding debt collection were updated following complaints about the ‘aggressive tactics’ employed by many debt collection agencies. These agencies collect monies owed to various types of company, including utility companies, banks and the government; money owed on loans, mortgages, council tax, utility bills, etc.

Complaints from struggling families have soared since the onset of the recession, with unfair court action and mistaken cases of identity commonly being reported.

Emma Parker, a communications officer for the Financial Ombudsman Service, comments:

“Since April 2007, the Financial Ombudsman Service – the free service set up by law to settle financial complaints – has been able to look at consumer credit complaints. This includes complaints about debt collection in relation to a consumer credit debt, such as a hire purchase, a loan or credit agreement.

Debt collecting firms have a maximum of eight weeks to resolve disputes before the ombudsman can become formally involved. But if a consumer does not know how to contact a firm or would like the ombudsman to write the firm to let them know about the complaint in the first instance, they can call the ombudsman’s consumer helpline on 0845 080 1800.

The ombudsman received around 400 debt collection cases last year. Common themes have been people being pursued for a debt that isn’t theirs and people feeling that they have been harassed. If the ombudsman sees evidence of a systemic problem with a particular firm, it passes that information on to the regulator, the OFT”.

With the new 30 day rule, those affected by debt will have one month from receiving an initial letter from a debt collection agency to seek the necessary help and advice, in order to allow them to take control of their finances and prepare their case for the courts, if necessary.

The Citizens’ Advice Bureau has welcomed these changes, but is still concerned that not enough is being done. They have reported seeing a sharp increase in the number of people becoming the victims of unfair, often harsh, debt collection during the recession.

The charity says that the law needs to separate those who ‘wont pay’ from those who simply cannot pay, and treat each group accordingly; those who are in genuine financial difficulty should have their offers of payment accepted, instead of being continually pressed for more money.

Indeed, it is this group who should be receiving help from debt advice agencies, while those who refuse to pay should feel the full weight of the law.

Alarmingly, it is not only poorer families feeling the strain of the recession; around half of clients seeking help from the charity CCCS were homeowners, with 12% having an income in excess of £30000 per annum. The poor economic climate has seen an increase in the number of debt collection agencies being set up in order to target srtuggling families, and it is important these operate in a fair manner.

The Office of Fair Trading issues licences for consumer credit, and it has seen a marked increase in applications for businesses in the areas of debt management and debt collection. Luckily, the OFT does have the power to reprimand and fine companies that do not comply with the laws surrounding credit collection; one company has already been fined this year for unnecessarily threatening debtors with bankruptcy and court action.