FINAL-DEMAND notices piling up on the doormat are not the only sign that you have a debt problem. There are many more subtle indicators, such as using your overdraft regularly and failing to open monthly bills – and millions of people are storing up problems by failing to recognise these warning signs.

Those who earn generous salaries are not immune from problems. Chris Tapp, of Credit Action, the debt charity, says: “The symptoms of a debt problem are the same whether you earn £150,000 or £15,000. If you earn more, you are likely to owe more.”

For those who are suffering from stresses on the wallet, the recent credit crunch and this year’s five interest rate rises are likely to make things more uncomfortable in the months to come. Interest rates and charges on credit cards, loans and mortgages are already rising. Mark Dampier, of Grant Thornton, the independent financial adviser (IFA), says: “If the economy goes into a significant slow-down, ask yourself where the extra money is going to come from.”

Debt experts advise that those with large credit-card debts, hefty overdrafts or mounting bills should not bundle these up into another debt by taking out another loan automatically. Mr Tapp says: “We would advise that people seek independent debt counselling before taking any action. It may be that getting a low-rate loan is the answer, but there are other options. The worry is that once people have taken out a loan to pay off a credit card, they may start spending again. That is when things start to spiral out of control.”

People who want face-to-face advice can visit a Citizens Advice Bureau (CAB). All advice is free, independent and confidential. But those worried about seeing a stranger to talk about money troubles can seek help via the internet or over the phone. Moira Haynes, of the CAB, says: “A lot of people can manage the problem themselves, given the right guidance and tools.”

The Consumer Credit Counselling Service (CCCS) website (www.cccs.co. uk) has a free, anonymous tool that can give advice relating to your concerns. Alternatively, you can call the National Debtline on 0808 8084000.

Beccy Boden Wilks, of the National Debtline, says: “We can give advice on a whole range of issues, from unpaid parking fines to problems meeting loan repayments. Our service is completely anonymous – we do not need any personal details to be able to give advice. We also offer an e-mail advice service through our website.”

The first alternative to taking out another loan to cover your debts is simply to draw up a budget to get a real idea of how much you are spending. Mr Tapp says: “People will be amazed at how much they can save simply by taking a bit of time to check where their money is going. The average commuter spends £6 a day on their journey to work on items such as snacks and coffee. That’s £1,440 a year. Many people manage month by month, able to get by, but feel under constant financial pressure.”

If you have a large credit-card bill or overdraft that you cannot pay off by making simple budget cuts, then the next port of call should be your lender. Ask for your interest rate to be frozen and agree a monthly repayment scheme. Ms Boden Wilks says: “If your budget sheet shows that you do not have enough money to cover essential expenditure, such as mortgage, food and utility bills, as well as repayments, then your lender may agree to freeze the interest.”

An alternative for those who need more support to pay off several creditors is a debt-management plan (DMP). This can be set up free by an independent body, such as CAB, CCCS or National Debtline. Experts say that you should never pay for a company to set up a DMP on your behalf. A DMP does not cut your debts in the way that they would be with an individual voluntary arrangement (IVA), but it is much less damaging to your credit record.

Louise Rodger, of Callcredit, the credit reference agency, says: “An arrangement flag will be put on your credit record if you start a DMP. This will affect your ability to obtain credit, but it does not have the same long-term repercussions as an IVA or bankruptcy.”

An IVA or bankruptcy sits on your credit record for six years, but it may be the answer for those with more serious debt problems. Frances Walker, of the CCCS, says: “Having an IVA is a less onerous and less public form of bankruptcy. If you have a home, you are more likely be able to keep it if you have an IVA. The minimum debt is £15,000 and you have to be able to make repayments of at least £250 a month for five years.”

Once you have cleared your debts, do not rest on your laurels. Mr Dampier says that even those with no debts, but no savings either, could find themselves in difficulties. “It is great having no debt, but you have to have money behind you if something goes wrong,” he says. “You should aim to have the equivalent of between three and six months’ salary in a savings account.”