Debt Free Direct, the independent company which provides free impartial and professional advice to people with serious debt problems, has seen a huge increase in the number of calls it is receiving from people with money difficulties.

It is currently receiving 275% more calls per day than it was in December and it believes the key reason for this is that many people spent too much over Christmas.

Furthermore, the company has seen a 95% rise in calls from this time last year, which suggests that there has been a significant increase in the number of people with serious debt problems.

Sadly, Debt Free Direct estimates that a large number of people with significant debt end up being ill-advised on how best to solve their financial difficulties. With the wrong solutions many actually increase the amount of money they owe.

Andrew Redmond, Chief Executive, Debt Free Direct said: "Over the Christmas period, many people spent beyond their means and are now facing financial difficulties. We expect the number of people in this category to grow as credit card bills for December are now landing on doormats. Sadly, many people with money problems make the wrong decisions in trying to solve their problems or take no action at all.

"Whilst the heavily advertised consolidation loan and debt management schemes can help some people, for serious debt problems a more structured solution is needed. To find the right solution, you need to analyse carefully your income and expenditure, your level of debt and the interest and repayments you are making. Our free help-line can help you do this and ensure you find the right solution for you."

Debt Free Direct believes that many more people with serious financial difficulties should be provided with IVAs, a legally binding contract between an individual and all of his or her creditors to repay them what they can realistically afford. However, it estimates that only around one in 20 people in this category are allowed access to this process because it is very difficult to obtain agreement from creditors to enter IVAs. As part of Debt Free Direct's service, if an IVA is appropriate for a customer, it will negotiate on their behalf with their creditors.

Debt Free Direct offers the following advice to people who are finding it difficult to make repayments on their debts: Don't ignore the problem. One of the biggest challenges is to face up to the problem and do something about it.

Draw up a list of your debts and prioritise them. Top priority should be given to your mortgage or rent payments because otherwise you could face losing your home If you have a number of creditors and are finding it difficult to make your repayments, take professional advice from a debt advisory service like Debt Free Direct. They can help you find the best way to get your debt back under control.

Look for ways to reduce your expenditure: Could you cut back on eating out or shopping, for example?

Think twice before taking on more debt, unless it's to pay off existing debt at a lower rate of interest. Ill advised borrowing can often makes the situation worse. Consolidation loans and debt management programmes are best for only a small proportion of people. Other solutions such as IVAs are available which may be more appropriate For free advice on managing debt problems, call Debt Free Direct free on 08000 83 67 51.