Best buy: debt and insurance

We like Lombard Direct loans

Lombard is currently the most competitive provider for those borrowing up to £5,000, with a rate of 6.9%.

It also offers the best rate for people borrowing between £5,000 and £14,000 at 6.7%. However, the second rate is only available over the internet. For non-internet users, Northern Rock ties with Lombard at 6.9%.

Ryanair this week launched personal loans but its rates don't quite compare with its rock-bottom flight prices. They begin at 7.9% for loans of more than £15,100, but its typical rate will be 10.9%.

Richard Mason from Moneysupermarket says: "The personal loans market is highly competitive right now - which means there are some great deals out there, but the best are usually only available online."

We don't like Barclays loans

Don't automatically assume that the marketing leaflet from your bank really is promising a good deal.

Barclays Bank, for example, neither offers a particularly attractive personal loan rate, nor does it have a subsidiary or internet brand offering better rates.

Whereas Co-op offers Smile, and RBS has teamed up with Tesco, Barclays has no such links, according to Richard Mason from Moneysupermarket.com. "It is still offering loan rates in double figures. It is time to bring its rates down and offer net-savvy customers a cheaper alternative."

Barclays also carries out risk-based assessments, so customers can be sold into rates as high as 15.9%. "This is not good pricing for a bank like that - it is very, very expensive lending," he says.

The dos and don'ts of debt

1. Don't bury your head in the sand:
Your debt will not go away. You must tackle the problem before it escalates out of control.

2. Talk:
Debt can be stressful, so it is important to tell someone. If you can not tell a member of your family, there are a number of charities who can help you cope: from counselling to debt management strategy.

3. Prioritise:
Sit down and prioritise your debts. For example, meeting repayments on essential services like your mortgage and utility bills should be your first priority. If you are paying off a range of credit cards and store cards, you should pay off those with the highest rate of interest first.

4. Change:
Switch the balance of your credit card to one which charges a lower rate of interest. Check our best buy tables to find the best transfer deals. Avoid "consolidation" companies - you pay more than you expect.

5. Don't panic:
Despite what you may think, many companies are sympathetic to people who cannot afford repayments. Recovering debt can be expensive, so they are often willing to work out an agreement.

Help:
There are a number of free advice services to help you manage your debts.

Citizens Advice Bureaux: the largest provider of free, impartial and holistic debt and money advice in the UK. For your nearest bureau, see your local phone book or visit citizensadvice.org.uk

National Debtline: a free telephone-based information and advice for people in England and Wales. Call 0808-808-4000 or visit nationaldebtline.co.uk

Consumer Credit Counselling Service: a charity funded by the financial services industry specialising in debt management plans. Call 0800- 138-1111 or visit cccs.co.uk

Payplan: a not-for-profit organisation recommended by some trade unions. Call 0800- 085-4298 or payplan.com

The Money Advice Association: gives details of your nearest adviser for people in England and Wales. Call 01476-594-970 or visit m-a-a.org.uk. Those in Scotland can contact Money Advice Scotland on 0141-572-0237 or visit moneyadvicescotland.org.uk

Advice UK: the new name for the Federation of Information and Advice Centres. It is a large network of advice-providing organisations on 020-7407-4070 or at fiac.org.uk.

For agencies in Northern Ireland, contact the Association of Independent Advice Centres on 028-9064-5919 or at aiac.net