More than one million under-40s are struggling to cope with debt, leaving them unable to build up assets in the same way as previous generations,according to the Consumer Credit Counselling Service (CCCS).
The government is considering giving the Money Advice Service responsibility for running debt advice firms, Mark Hoban financial secretary to the Treasury has said.
Some debt management firms have failed to pay clients' creditors, instead keeping their money.
The collapse of debt management firm debtDr just before Easter was a huge blow for its users but also advisers who recommended the firm to clients.
IFAs have called for debt management to be regulated on a par with advice, after a series of firm failures which they say damage the reputation of the wider financial services industry.
The OFT has revoked the consumer credit licences of four debt advice businesses after they targeted consumers with misleading unsolicited mailings.
The number of bankrupt over-65s has increased six times in the past ten years, the Insolvency Service says.
The government plans to allow people who hold pensions to access debt relief orders (DROs), which provide a cheaper alternative to bankruptcy.
The recent announcement that pension increases will be linked to CPI rather than RPI could leave future pensioners out of pocket. Helen Morrissey looks at whether this will be the case and asks how the change needs to be managed
A Lancashire IFA has teamed up with a local debt management firm to offer financial planning help to clients struggling with cash-flow.