After a period of discussion between UK lenders and debt advice providers, new methods for helping people in debt have been announced today.

The talks have focused on the rising debt problem for UK consumers and included input from the Ministry of Justice, British Bankers' Association (BBA), the Consumer Credit Counselling Service (CCCS) and the Citizens Advice Bureau.

The organisations have worked together to develop more options for helping those who are suffering from factors in their lives that cause financial difficulties. Many people are finding that redundancy, reduced hours or illness has put them under financial pressure, as very often they are completely unexpected and cause money worries, stress and the cycle quickly spirals out of control.

Under the proposals, people looking for help with debt, but don't know where to turn, have the ability to make a token payment towards their debts, which will help in overcoming the initial money problem.

What is included in the new debt help proposals?

The Banks, building societies, mortgage lenders and credit card companies who follow the new lending code, will provide extra assistance for people who find themselves in financial turmoil. The options available under the Lending Standards Board's initiative include reducing or freezing interest and charges and accepting reduced monthly payments in a bid to provide financial stability.

The Consumer Credit Counselling Service will shortly introduce a new payment arrangement, which is specifically targeted at borrowers with at least two unsecured debts, who are struggling to make ends meet.

The program includes the reduction of monthly payments to as little as £1 per debt per month, which has been accepted as a demonstration of a want to pay. It is believed that by taking a responsibility for your debt, but at the same time reducing your monthly payments, less people will opt for the "head in the sand" approach and will quickly regain control of their finances, just as soon as their personal circumstances improve.

Consumer Minister Kevin Brennan said: "If people in debt genuinely can't pay for a short period, they should be offered this important relief and the chance to make token payments while they sort out their problems." With more and more people finding themselves in situations that are out of their control, UK lenders have recognised that there are sensible alternatives to taking court action, for them as well as for their customers.

A spokesman for the Debt Advisory Helpline said "We are receiving more and more cries for help from UK consumers who are struggling with debt. We welcome the new initiative; anything that eases the burden when people are dealing with life trials, as well as financial pressures has to be good news. The Debt Advisory Helpline receives many enquiries everyday from people that just do not know which way to turn. A large percentage have just ignored their situation, as they have no idea of how to get themselves out of spiralling money troubles, and the advice given is always don't ignore the problem, it won't just go away and there are money experts on hand, who provide help and advice to deal with the debt, irrespective of how bad it may appear."