The average debt level of customers on informal debt management plans is at its lowest since the Chiltern Debt Monitor began. Chiltern has found that the average debt of someone on a debt management plan is down by almost £400 since the beginning of 2008, illustrating that people are taking affirmative action to tackle their debt problems sooner, and preventing themselves from getting further into debt.

The average debtor, aged 44, now owes £25,945 – below £26,000 for the first time since Chiltern started its debt monitoring service – they have an average of eight creditors, and will take 146 months to become debt free.

However, Chiltern has voiced concern that as people’s disposable income drops as household expenditure on food and fuel bills rises, those in debt will be under additional pressure to keep up with their repayment plans.

The reduction in the availability of credit, as mortgage lenders, loan and credit card providers also feel the pinch of the credit squeeze, will help reduce the amount of debt that people get into, but it is simultaneously depriving them of a way to make ends meet at a time of financial crisis when budgets are stretched to breaking point.