An Individual Voluntary Arrangement (IVA) could be the right solution for consumers who owe at least £12,000 to three or more creditors, it has been advised.

Under an IVA, Brits who are struggling to meet their monthly commitments could write off up to three-quarters of their debt, explains the Mirror.

As well as this, it allows them to avoid bankruptcy and pay what they can realistically afford each month.

"An IVA is a formal agreement between you and your creditors, interest will be frozen, your debt will be reduced and in five years you will be debt free," the news provider explained.

Debt management plans are another option, allowing consumers to consolidate their monthly outgoings without having to take out a cash loan, it continues.

Most suitable for those with short-term problems, debt management plans are arranged by professional companies who deal with creditors and may be able to get interest frozen or reduced.

According to the Independent, figures due to be revealed this week will show record levels of insolvencies, with numbers topping 30,000 in a quarter for the first time.