Following the last ten years where the government has actively encouraged borrowing, we are facing an insolvency crisis.

Many families and individuals have been using their credit cards to pay for day-to-day spending, which has resulted in huge debts.

The Bank of England has warned that many lenders are writing off record levels of credit card debts, forcing many to declare themselves insolvent.

Lenders are now pushing up interest rates, which in turn is causing problems for families. However it has been reported by the Bank of England that families are actually saving more now than they have ever done before.

In 2009 £24 billion was put into savings accounts and only £20 billion was taken out in new loans. This was the first time since 1988 - when the records begun - that savings over took borrowing.

The stats are no conciliation for those in debt, who are worrying about how they are going to pay off the money borrowed.

There are warnings of an 'insolvency crisis' in the UK, with a predicted 146,948 Brits declaring themselves insolvent this year. This figure is up 10% already on 2009.

With the UK standing on the brink of an insolvency crisis, what can we do as individuals to get ourselves out of debt?

For some it is a simple as writing off the debt with an IVA but other people are finding new ways to increase income, cut costs and pay off debts.

One woman was staring down at £38,000 worth debt. Although advised that declaring herself bankrupt was the best way forward, her business consultant refused to carry this out for her.

The debts for Barbara, as for most, started at University and mounted after having children and needing money to pay for what they needed. With monthly repayments standing at £1,100, more than her salary, Barbara drew up a plan. The essential expenses stayed whilst the luxuries were ditched. Barbara also made the move to a bigger property and sub-let rooms to students. Eventually, Barbara managed to pay off all of her debts and now actually helps people to practically face debt and get out of it.