Debt statistics stated in the latest annual report from the APACS are that nearly two thirds of adults have a credit card in the U.K. and more than six in ten card holders in 2004 had more than one card, with one in ten holding five or more. In 2004, there was an average of 4.1 plastic cards for every adult in the U.K. At the end of 2004, there were 74.3m charge and credit cards compared with about 59 million people in the country. These facts define the distressing indebtedness that haunts many people.

Debt Direct Free is a debt advisory service that was established in 1997 by Lathams Chartered Accountants. The business itself was acquired in May, 2001 through management buyout by three of the former partners of Lathams and has since floated on the AIM market in December 2002. Andrew Redmond, the Chief Executive Officer, is qualified as an accountant at PricewaterhouseCoopers and joined Lathams Chartered Accountants in 1994 as a partner. He has stated, "I am confident that we are now in a position to comfortably exceed the market expectations with regard to our future IVA run-rate." Debt Direct Free can negotiate an effective Individual Voluntary Agreement (IVA) for debts over ¢G15,000 to three more more creditors for a person with regular employment who resides in England or Wales.

An IVA is a legally binding agreement that protects you against further action from your creditors and stops them from charging additional interest. Such an agreement can enable a person to be debt free in five years. There is a single monthly payment over the five year period and a person only agrees to pay what they can afford. Creditors often agree to write off fifty to seventy-five percent of a person's debt and then leave them alone. At the end of paying the IVA, all debts are cleared.

The debt advisory service, Debt Direct Free, also provides independent advice at no cost to a person in debt. A confidential review of finances is done that establishes a person's true status. The best approach is recommended, depending on the situation. If the debt is not very serious, budgeting advice or informal arrangements with creditors is given. In other circumstances, a consolidation loan or a new mortgage may be suggested. Debt Direct Free works with thousands of customers every month, including a government working party, and helps them to avoid the trauma of bankruptcy.

The partners of Debt Direct Free are fully aware of the number of different options available to individuals facing debt. They state that the problem of over-indebtedness has arisen due to social, commercial and economic factors such as rising house prices and irresponsible lending. If interest rates continue to rise, they believe that there will be a "flood of economic victims". Debt Direct Free also submitted a response to the Government Consumer Credit White Paper that focuses on a proposal for a simpler new Consumer IVA (CIVA). This organization also lobbys for increased regulation in the sector. Debt Direct Free complys fully with all applicable legal and ethical standards.

Debt Direct Free is currently located in Lancashire and has a free number that a person can call to get advice without obligation. Debt Direct Free is also working on a new facility, which it moves into in October, 2006, and increases space available by a further 26%, enabling future growth and the ability to help even more indebted people.