People who are struggling with debt management need to make sure they assess all their options before committing to a plan of action, it has been said.

Being equipped with all the right information is crucial to proceeding in the best possible way to suit an individual, noted Beccy Wilks, spokesperson for the Money Advice Trust.

"You need to get complete information on how all options of debt handling are going to affect you, rather than just looking at debt management plans, consolidation loans or an IVA [individual voluntary arrangement]," claimed Ms Wilks.

Assessing the pros and cons of any solution can prove worthwhile in the long-term, she added.

The Office of Fair Trading recently launched a consultation on draft guidance setting out practices it considers constitute irresponsible lending.

In its draft guidance, it has committed to ensuring all key information provided to prospective borrowers is clear, easily understandable and properly explained to them.

Furthermore, it proposes that lenders should be assessing a prospective borrower’s ability, in the context of their overall financial circumstances, to afford to meet repayments in a sustainable manner.