Dealing with Debt is not easy, I can safely say that. Debt is something we can find ourselves in through no fault of our own.

In some cases, the debt we are in is of our own doing. This is certainly the case for me. My debt was brought about through being irresponsible and gambling.

Your debt problem could be as a result of something beyond your control. The fact you are in Debt is something that you need to take seriously and look towards solving your debt problem.

Acting quickly to resolve your debt problem is the best way to get back on the road to financial recovery. The longer you leave it, the worse things can become.

Getting the information about your Debts

In order to start paying back your debt, you need to have the information required to work out how much you owe. The best way to do this is to gather together all those statements and debt collection letters you have been hiding. It might be a shock to see how much debt you are in, but once you know you can start getting out of debt.

From this information you can do the following: –

• List of the names of the companies you owe money to.
• List how much you owe to each company.
• Finally write down the minimum payment you are required to make each month.

If you don’t have this information to hand, call or write to the companies to get an up to date balance and payment information.

Work out what you spend each month

Next on the list is to make a complete list of all your monthly expenses. This includes things like food, petrol and clothing for example. Once you have all this information, you will know just how much you are spending.

You may find it helpful to use your last months bank or credit card statements to help with working out how much you are spending each month.

Reduce your Expenditure if possible

Looking at your expenses, see if you can reduce any of them or cut them out completely. For example mobile phone contracts could be cancelled if possible, the same applies for your gym membership or Satellite TV Subscription. Make cuts where possible to see if you can remove the deficit.

This then completes your monthly expenditure. If you find you are spending more than you receive in income, it is time to get help.

If you have enough money left to pay your debt and live. Start using any extra money you have to pay towards your most expensive debt. That is the debt that costs you the most in interest per month. It might mean being a bit boring for a while and not going out, but it will mean reducing your debt.

Getting help Dealing with Debt

The best place to start with getting help is the Consumer Credit Counseling Service. They can offer free and impartial advice about your debts. The CCCS also have a handy debt remedy application on their website which can help you with your budgeting and suggesting the best course of action for you.

The helpful links section of this blog contains links to various debt companies and charities.

To the right hand side of this page, there are links to various posts I have written about debt. These include dealing with debt and setting up your own debt management plan. Feel free to take a look around. Good luck.