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.