The Office of Fair Trading has launched an advertising campaign to help people who are in debt get the situation under control.

The campaign comes at a time when the average household owes £6,800 on credit cards, loans and store cards, while one in four people who is in debt does not know how much they owe.

The radio advert features Coronation Street actress Sue Cleaver, whose character Eileen Grimshaw has herself struggled with debt.

In the advert she advises people who are having problems keeping up with their repayments to seek impartial advice.

Launching the campaign, OFT executive director Penny Boys said: "We decided to launch the campaign to help those who are struggling with debt problems.

"We have to recognise that debt is at record levels, in a way this is uncharted territory for the UK."

The OFT advises people who are in debt not to panic or ignore the problem but to seek impartial advice on dealing with it.

It suggests people contact lenders and prioritise repaying certain debts such as their mortgage.

It warned people to think carefully before borrowing more to pay off their existing debts and to make sure they fully understood the cost of the deal before signing a contract.

About one in three loans is currently taken out for debt consolidation and this is set to rise to 41 per cent by 2007.

The OFT also called on lenders to act responsibly and not mislead people.

It has produced a pocket guide, In Debt? Help Yourself Out, giving information on where people can go for free, impartial advice on debt.

The advert will run on local radio stations across the country and is being accompanied by adverts in local newspapers.

The launch of the campaign was attended by Sara Syme, of Hull, a single mother with three children who had gone £8,000 into debt after getting divorced.

Describing her experience she said: "When I originally got into debt I didn't know where to turn.

"It got to the point of not answering the door or the phone and dreading the post coming."

For a copy of the OFT guide, call 0800 3289382 or write to OFT, PO Box 366, Hayes, UB3 1XB.

Thursday November 20, 2003