Widespread debt is not just a syndrome of our modern age. There have always been people who have found themselves with debts they have been unable to repay.

It is difficult to envisage how modern society could exist without debt; it only becomes a problem when, possibly as a result of changing circumstances, it becomes unaffordable.

There are a number of strategies for coping with unmanageable debt. These include debt consolidation, debt management, IVAs (Individual Voluntary Arrangements) and bankruptcy and the most appropriate one for any specific borrower depends entirely on the borrower’s specific circumstances.

Both debt management and debt consolidation are informal arrangements, whist IVAs and bankruptcy are formal. Whilst for some people bankruptcy is the only option, for many an IVA will allow them to write off a large proportion of their unsecured debt without enduring the potential downsides of becoming bankrupt such as losing their home.

An IVA lasts for approximately five years during which time it is necessary to maintain regular monthly repayments towards your debts. On the successful completion of the IVA all outstanding debts will be written off (possibly subject to releasing some of the equity in your home). Your IVA will remain on your credit report for six years.

If you find that you have problems with your debt, then it is likely that some form of debt management will be necessary in helping you cope with it, and a very important part of debt management is drawing up a realistic budget. Here we will look as some basic practicalities of budgeting.

When drawing up a budget what you are doing is working out the amount of money that is coming into your household and the amount of it that you must spend in order to maintain the basics of life. Only by doing this can you find out if you can afford to make repayments to your debts and if so, then how much you can afford realistically.

Your income includes all the wages and salaries that are coming into the house and should take account of any bonuses or tips that you receive. If you receive any benefits such as child allowance or tax credits, then these should be included. So too should any maintenance payments you receive along with any rental income; for instance if you have a grown up child still living at home and paying you rent.

Next you should list your outgoings. These include all your housekeeping expenses such as food and cleaning materials and items, and such things as school diners, meals at work, and if you smoke then the amount of money you spend on cigarettes.

Next add in payments on such items as your mortgage or rent along with all your secured loans and essential insurance payments such as hone insurance and any schemes that relate to your mortgage such as endowment policies.

Add in council tax, utility charges, telephone bills, travel, the cost of your car for instance road tax, insurance and petrol, public transport, television licence, clothes, prescriptions charges, opticians and dentists. Include regular maintenance, for instance on a boiler. You should also add in a sum to cover unexpected expenses.

Now you can see what remains when you subtract your outgoings from your income, and you will be able to work out how much you can use to repay your debts.

Possibly one of the most humiliating experiences that can be experienced is a visit from the bailiffs. Bailiffs are people who are generally employees of a county court and whose job it is to take possessions of people’s goods and shackles in order to repay debt. Much as this might seem to be a rather unpleasant occupation, as they say somebody has to do it. If money has been borrowed and not repaid as agreed, then it is only right that the lender should seek compensation for the loss. In addition to county court bailiffs, there are also certified bailiffs and private bailiffs, all with differing degrees of power.

There is only one circumstance in which a bailiff may forcibly enter a home for the first time, and that is to collect unpaid taxes. In all other circumstances a bailiff may only enter your home by means that do not involve force. This means that they can enter a home through an open door or an open window, but they are not entitled to force their way against somebody blocking their entry. For instance, if someone opens a door to a bailiff but tell them that they cannot enter, then the bailiff must nor push the person aside and walk in.

Sometimes bailiffs will use trickery to gain entry. They might walk in as soon as the door is opened without allowing the person who opened the door to have the opportunity to deny it, they might suggest that a person might prefer to talk to them in the privacy of their home; a very common trick is to ask to use the phone to call their office. Once entry has been gained once, then the bailiff has the right to enter on any subsequent occasion even if this involves force or breaking down a door.

Advance notice of a planned visit from a bailiff must be given. Anyone receiving such a notice should ensure that their windows and doors remain locked at all times. You should then seek help urgently in order to find a way to cope with both the current situation and your debts. Even at this stage there are things that you can do, for instance it might be possible to obtain a suspension of the warrant of execution. Debt Advisers Direct (www.debtadvisersdirect.co.uk) is a good place to turn to. It provides further information on how to deal with bailiffs along with help and advice on dealing with all kinds of debt.