A recently published report has forewarned that the number of people struggling with debt in the UK is set to at least double in numbers in 2008.

The report, entitled UK Problem Debt - consumer crisis or efficient market? warns that changes to the economic climate involving factors like the slowdown in property market added with rising inflation costs will ultimately result in more people facing financial difficulties. The report also points out that the recent credit crunch has lead to tighter lending practices will have a major impact on the solutions available for people looking to manage their debts.

It has been estimated that Brits, who are experiencing problems with debts, have unsecured debts of £25billion pounds.

Debt management company TDX Group estimates that one million people are struggling to cope with an average of 25,000 pounds-worth of unsecured debts out of a total UK consumer debt mountain of 1.4 trillion pounds.

That could see the number of people taking out individual voluntary arrangements (IVAs) -- an alternative to bankruptcy, which allows people to settle debts with less damage to their credit rating and employment prospects -- double this year.

Last year, 400,000 people entered into IVAs and debt management schemes.

Mark Onyett, chief executive of TDX Group said: "These issues need to be addressed urgently, as we expect strong growth for the debt management market during 2008." The number of people becoming insolvent unexpectedly dropped last year for the first time in nine years, but experts have warned that 2008 is likely to set another record as debt problems mount.

TDX has urged people that find themselves in situations where they are struggling with debt to take time to seek out the best solution for them. The majority of people who take out a debt solution sign up with the first organisation they contact, despite fees from IVA providers varying from £5,000 to £9,000.