My first reaction on reading the book was one of total relief. Whilst newspapers and magazines occasionally address the subject of a little light overspending at Christmas, I had never come across anything that dealt with large-scale debt. The book begins with a number of examples of others who had large debts and worked their way out of it. No miracles, no bankruptcies, just a lot of honesty with oneself and determination to take responsibility. The book is written by an American. Don't let that worry you. The principles are the same whichever side of the Atlantic you're on.

The author goes on to explain the psychology of debting. Looking back I realise I overspent for psychological reasons. Trying to keep up with others, compensate for perceived deprivations etc. Realising this helped me get a hold of my finances.

The rest of the book provides practical step-by-step help with dealing with creditors, managing your money (no matter how little you think you have - I was earning £14K p.a. at the time) so as to be able to repay your debts without feeling massive deprivation.

It truly put me back on to a path that allowed me to take control of my finances, repay all my debts, recover my dignity and have a decent life. Twelve years on I have no debts and have a lovely home.

If you are in debt and wondering whether to buy this book, I urge you to buy it, read it, re-read it and put the principles into practice. I promise it really can be done. - Click Here to buy It

Personal bankruptcy continues to rise as households struggle with soaring bills and credit card payments, according to Government figures. The number of individual bankruptcy petitions filed in the High Court and county courts in England and Wales between April and June was up 10 per cent at 15,796 on the same quarter last year, the Department for Constitutional Affairs said.

Although the number of petitions from creditors fell 17 per cent to 4,649, the number of people filing for bankruptcy themselves rose 20 per cent to 11,147.

But fewer people filed for bankruptcy in the period than between January and March, when some 13,897 made the move. However, companies appeared to be coping better than individuals with rising costs.

The number of firms subject to a winding-up petition during the period was almost 2,800, a drop of 18 per cent on last year.

Credit card bills and loans

The figures back up those released last week from the Government's Insolvency Service, which showed a record number became insolvent this spring as Britons struggled to pay off credit card bills and loans.

Some 26,021 people in England and Wales became insolvent - a step short of bankruptcy - between April and June, the highest figure ever and well above the 15,645 in the same period last year, and the 23,653 who went through the courts between January and March this year.

Financial services group KPMG predicted that the total number of insolvencies this year would top 100,000, the equivalent of one every minute of the working day.

The Bank of England heaped further pressure on households last week when it increased the cost of borrowing by 0.25 per cent.

Major high street banks have also reported soaring levels of bad debt in the UK.