Debt management has been a steadily growing industry for the last decade as the number of consumers with debt problems rise. This growth, however, has recently exploded and is set to rise even further when the credit crunch fully sets in.

"We are experiencing record numbers of enquiries regarding bankruptcy and debt advice", says an industry insider, adding, "We are unable to cope with the huge volume of calls we are receiving. For the last 3 years we have seen a 59% increase, year on year, of people being declared insolvent."

Debt management companies act as an intermediary between the debtor and the creditor. Typically these specialist companies will contact creditors to negotiate more manageable payment terms with a view to allowing the debt to be paid off as soon as possible within the means of the creditor. Debt management can offer relief and a lifeline to those struggling with debt. It is seen by many as a way out of debt and an alternative to bankruptcy.

Causes of consumer debt are a combination of mismanaged credit and lifestyle choices. Saving and investment is at an all time low as consumers spend more and more, therefore putting the consumer in a cycle of spending and borrowing.

Experts put the blame on the banking industry and their reckless provision of credit facilities to those unable to manage them properly. This situation has now come to an end as consumers now face the reality of paying back years of living on credit. We can all expect credit, even for those who are more solvent, to be increasingly difficult to obtain.

Of course, this news isn't all bad if you are in the debt management industry. With new companies opening on a daily basis, the only growth industry in the UK seems to be debt management.