A columnist has questioned how cash-strapped shoppers feeling the pinch following their Christmas spending are so willing to rack up further debt in the January sales.

Writing for the Daily Express, Julia Hartley-Brewer accused Britons of "consumerist gorging", despite 4.4 million people still repaying debts incurred during Christmas 2006.

She claimed a "credit card debt culture" is spreading through Britain like a sickness.

"But there is a simple cure and it works every time. Cut up your credit cards and if you don’t earn it, don’t spend it. That’s the best prescription for good financial health for 2008," Ms Hartley-Brewer continued.

Earlier this month, research by accountancy firm Grant Thornton predicted that overspending at Christmas will be responsible for "at least" a third of all personal insolvencies during the first three months of the year.

It warned that personal insolvencies during 2007 amounted to 110,000 and 2008 could see record figures of 120,000 facing bankruptcy or other insolvency proceedings.

Britain is likely to see an increase in personal insolvencies of more than nine per cent in 2008, a new study has predicted.

Accountancy firm Grant Thornton has published a report which suggests overspending at Christmas will be responsible for at last a third of the 28,000 insolvencies it anticipates before April.

Mike Gerrard, head of the company’s personal insolvency practice, said many Britons had failed to heed "financial warning bells" as they shopped for Christmas.

"Come January, they find themselves in a situation where previous financial woes are compounded by the bills arriving from the festive season and in these situations insolvency becomes the only way out," he explained.

For those facing insolvency, one alternative to bankruptcy is an individual voluntary arrangement (IVA).

These were created to allow people to avoid bankruptcy and to retain possession of important items such as their home.

IVAs allow a certain amount of money to be written off in order to set a borrower debt-free within a set period of time, often five years.

This year could be a tough one for personal finances and debtors should sort their cash situation out now to prepare for the "rough ride ahead", an expert has warned.

Online financial advice provider Moneyfacts.co.uk has urged borrowers to sit down and write up a list of the money they owe to enable them to plan for 2008.

"This is the hardest bit. Many people know they have money problems but are not prepared to face up to them," it warned.

Moneyfacts.co.uk urged borrowers not to ignore their financial problems and obligations but to "take control" of their debt issues.

Debtors have many possible options if their debt levels have become unmanageable, the government reports.

It suggests borrowers consider the variety of options open to them, including consolidation, the assistance of a debt management company, individual voluntary arrangements and advice with budgeting.

However bad a debt situation may seem, there are always routes out of debt, the government advises.

More than 4.4 million people have still not cleared their borrowing from last Christmas, a new report has warned.

Price comparison website MoneyExpert.com has conducted research which shows one in ten credit card customers have not yet fully repaid last year’s festive borrowing, and it warns they could be paying a considerable amount in interest.

Sean Gardner, chief executive of MoneyExpert.com, commented that some people should cancel their credit cards this year to avoid overspending.

He said if debt "lingers" from year to year, it suggests the borrower is in trouble.

"With lenders getting tough that is not a good position to be in. If you’ve not cleared the debts of Christmas past it is time to face up to the future," Mr Gardner concluded.

The government advises those seeking to become debt-free to consider options such as consolidating debts, making informal agreements with creditors, applying for an individual voluntary arrangement or using the services of a debt management firm.

Many credit card users have had their credit limit increased without requesting it, new research has shown.

A study by consumer magazine Which? Money revealed 71 per cent of credit card users had been given an unsolicited rise in their credit limit while 62 per cent had been sent credit card cheques without requesting them.

Research published recently by price comparison site uSwitch.com warned that 313 million credit card cheques were issued last year without being requested.

This form of credit is usually more expensive than using a credit card and Mike Naylor, personal finance expert with the site, said the findings raise questions about the providers’ commitment to responsible lending.

He said: "It is easy to see how credit card cheques can appear a very attractive option for borrowers who are desperately in need of money."

Borrowers who use such credit as a "quick fix" could end up with a "serious financial hangover", concluded Mr Naylor.

It is too early to tell if the credit crunch will cause an increase in insolvency, however, it is likely the cost of mortgages will rise for some households, an expert has warned.

James Ketchell, spokesperson for Consumer Credit Counselling Service (CCCS), said it is hard to tell if there will be an increase as it can take time for debt levels to build up to the point where people declare themselves insolvent.

However, he explained: "There is a risk that people on cheap fixed-rate mortgages will in the future be forced onto more expensive products, so they will have to address their spending as a consequence of that."

Rent or mortgage repayments are the most important part of a person’s budget and so their spending will have to be adjusted accordingly, continued Mr Ketchell.

Leisure and spending on luxury items are likely to be the first areas people cut back in, he added.

Government statistics show that last year there were more than 100,000 insolvencies in Britain.

A leading accountancy firm has said the rising cost of living is threatening to push struggling debtors "over the edge".

Head of personal insolvency at KPMG Steve Treharne has warned that opportunities to refinance are becoming increasingly limited and many people are being forced to "face the reality" of their debt situation.

The increasing cost of council tax and household bills, combined with the effects of rising interest rates is pushing debtors to their limit, he warned.

"Although many borrowers will be able to ride out the storm, I fear that more individuals will have to take formal steps to deal with their over-indebtedness in the months and years ahead," added Mr Treharne.

The government warns borrowers that ignoring debt is the worst thing to do as the problem will not go away by itself.

It suggests debtors look to increase their income and cut their costs, or seek help arranging an agreement with creditors to repay an affordable amount each month.

The beleaguered Northern Rock bank has been accused of refusing to help customers who are struggling with debt, it has been reported.

Liverpool solicitor Ron Hutcheon is defending two debtors in court against actions brought by the bank and believes the case could change the way banks treat struggling customers, the Guardian reports.

The bank rejected offers of individual voluntary arrangements (IVAs) from the two defendants, who remain anonymous, and took court action against them.

Mr Hutcheon said neither of the debtors had been offered help or advice and so had turned to an insolvency practitioner.

"The resulting IVAs in both cases appear on paper to be a good proposal as an alternative to bankruptcy," he told the newspaper.

However, one spokesperson for a debt solution company said Northern Rock was the "bully on the block", reports the Guardian.

Public confidence in the lender was shaken recently as it emerged it had applied to the Bank of England for a liquidity support facility.

An expert has accused lenders of "tripping over themselves" to provide credit and failing to adequately check borrowers’ suitability.

Vice president of the Association of Business Recovery Professionals (R3) Nick O’Reilly has said the competitive nature of the financial services market meant checks were "less rigorous".

Those who might have been refused in the past are now finding it easy to secure credit, and the recent boom has been fuelled by an increase in personal spending, he claimed.

"Now that the level of borrowing is so much bigger in terms of trillions, the level of people with debt problems is obviously higher than it used to be," he stated.

Figures released by the government show there were nearly 27,000 individual insolvencies throughout England and Wales in the second quarter of 2007.

Although that was a decrease on the previous quarter, it was a 4.2 per cent increase on the same period in 2006.