When you're struggling with unmanageable debt, finding a solution is very important. The sooner you address your debt problems, the easier it's likely to be.

However, it's not always as simple as that. Some people may not realise quite how serious their debt problems are until relatively late on - while others may try to ignore the problem.

But with something as serious as debt, you shouldn't hesitate to get help. Knowing when your debts have become a real problem, and when to get help, can make a big difference to how easy it'll be to clear your debts in the long run.?

When is a debt management plan suitable?

A debt management plan - an informal agreement with your lenders for reduced payments towards your debts - is designed to help people who can't afford their debt repayments as they are now, but who would be able to repay their debts over time in smaller instalments.

Debt management plans are not suitable for people who can manage their existing arrangements, however, and they're also not suitable for people who have no realistic chance of paying off their debts in full.

My debts are out of control - is it too late for debt management?

This depends on what you mean by 'out of control'. If you can't afford your existing repayments but it looks like you'll be able to repay your debts in full, you may well be able to arrange a debt management plan with your lenders.

But if your debts have come to the point where you simply won't be able to repay them in full, you'll probably need to consider alternative debt solutions, such as an IVA (Individual Voluntary Arrangement) or bankruptcy.

How can I arrange a debt management plan?

There are two main ways you can do this. Some people choose to arrange their debt management plan alone, by speaking directly with their lenders, while others prefer to use a professional debt management company.

The advantage of using a debt management company is that they'll do the work (negotiations, distribution of payments, ongoing administration) on your behalf so you don't have to - and they'll be there for you if you have any problems while the debt management plan is running.

Bear in mind that any debt solution can have consequences - it could damage your credit rating, for example, or mean you end up paying more in the long run. For more information, talk to a debt adviser.