Over the last few weeks we have experienced a dramatic rise in enquiries from people looking for help and advice with their finances. The worrying trend is that people are looking to increase their level of personal debt either by looking for a new credit card or a new loan.

Recent statistics from major insurer AVIVA confirm that there is a huge appetite for more borrowing. Between January 2011 and January 2012 UK consumers fuelled a 48% rise in the level of personal debt from £5,360 to £7,944 per person. The fact of the matter is rising fuel bills and living costs are forcing consumers to use their credit cards for general day-to-day living expenses. Taking into consideration the unprecedented jump in consumer debt, serious steps are now needed to get personal debt under control.

If we look at this jump in personal debt, it leads me to believe that many millions of people are spending £200 p.m. more than they are actually earning. This means that millions are currently insolvent.

If you are currently spending more than you are earning, it’s time to speak to a debt adviser before things get any worse. There are currently 5 million people robbing Peter to pay Paul each and every month, so you are certainly not on your own.

There are many options available such as obtaining cheap consolidation loans or re-mortgages to balance your monthly finances or, if this is not possible, options such as Debt Management Plans or IVA’s.

If you are concerned, at moneybrain we have many debt advisers who can provide a free no-obligation consultation and who will advise you on the best course of action.

One thing you must be aware of is that taking out a debt management plan or insolvency solution will damage your credit rating. Hence it’s always best to try and consolidate first.