Debt seems to be an ever present reality in our life. And whilst it stays under control, can be a way of enjoying some of the pleasures of life earlier than if we had to save before we could buy.

Circumstances change, however, and what was once a comfortable monthly debt burden can suddenly seem like a cliff face. With so much economic uncertainty, any loss of income can hit family finances hard. Redundancy, reduced working hours or no pay rise can be hard to factor in if there is little or no financial buffer in the monthly expenditure plan.

If circumstances change or debt has crept up such that it now forms a too big proportion of your monthly income, action needs to be taken to get it back under control. As with most things in life, the earlier this action is taken the easier the remedy is to implement.

It is always possible to look at ways of raising additional income. Second incomes either through part time work or outsourced paid internet activities can provide some income. But even that may not be enough to service the debt load that may have accumulated during the better years.

Time, then, to take a long and hard look at all aspects of the family finances. All areas of expenditure should be questioned and trimmed back where possible. Optional items such as gym memberships, eating out and other such activities should be reduced to try and generate additional free revenue with which to pay off debt.

On the expenditure side, you must look at all your bills as a whole and work out a debt management plan. Do not ignore items such as electricity and gas where changing supplier may lead to saving money each month.

One of the biggest aspects of a debt management plan is looking at all your loan obligations and working out a way to reduce the monthly burden. To do this, you will need to approach your lenders and ask for a reduction in the monthly payment. If done early enough and preferably before you start to default on any payments, then they may be sympathetic and allow you to make a reduced payment for either an agreed period of time or reschedule the loan to be repaid over a longer loan period.

Where these changes are agreed in writing then you have some certainty that the lender cannot change their mind. Although you may have paid a fee for the change, you have achieved a reduction in the monthly drain on your finances and can get back under control. The lenders may not formally agree to a reduction but accept a payment plan that reserves for them the right to go back to the original payment level at a later date. Such voluntary agreements are fine as long as you keep up your side of the bargain and do not default on their, or any other lenders, loan.

If you are uncomfortable talking to your lenders about changing your repayments, there is professional help available through various debt counselling companies that will do this for you. They will also help you to work out your budgets and act as an interface with the lenders. There are fees payable but the benefits are that all the discussions with lenders are done by people who are experienced in getting plans approved.

If necessary, you may also consider a more formal debt management plan called an Individual Voluntary Agreement. This is a formal agreement between you and your lenders for them to accept a reduced payment and a write off of some of the loan balance rather than an informal agreement. This can adversely affect your credit rating but affords the opportunity of a clean sheet start at the end of the IVA period.

Free debt counselling advice is available at any office of the Citizens Advice Bureau. Professional advice can be sought from any licenced insolvency practitioner.

Browse a range of useful websites about Debt Management.