How to Banish Debts

Debts are often seen as a necessary evil these days, but many people get into debt for no good reason.

There are simple methods you can employ to ensure you don't let your debts get out of control

Start off by working out exactly what your outgoings are over a month and compare with your income. You must be honest and include everything otherwise you are defeating the object of the exercise.

If the 'outgoings' column adds up to more than the 'income' column, you are going to have to make some sacrifices and cut out luxuries and unnecessary spending.

When the books are balanced, you have to make sure you don't overspend. Keep a record of your spending so you don't go over your budget.

If you have enough left over, you can always treat yourself but don't borrow from the next month's budget because it will lead to trouble in the future.

If you have let your credit card spending get out of control in the past, maybe you should try to get along without a credit card altogether.

If you do decide to keep your plastic, you have to get the best deal you can and use the credit card in the correct manner. Consider switching cards regularly to get the best rates. You will find that many cards offer a 0% interest rate for a limited time only ' so just switch when that period ends to another card offering 0% interest.

Wherever possible, pay off the balance as soon as your statement arrives ' that way you won't let the debt get out of control and you won't be stung by interest charges.

Avoid store cards - the interest rates for most store cards are far higher than most other forms of credit.

If you want to take advantage of the money-off incentives or free gifts, settle the amount you spend immediately and don't ever use it again.

Bear in mind there will be offers from your bank, card companies or utility providers landing on your doorstep every day but you must resist temptation. If you want something you can't afford, save for it.

Don't let your debts control you and get a firm hold on your finances.

However, if you do stray from the path of staying debt-free, don't suffer in silence. Get help in the form of professional debt counselling as soon as possible because the longer you delay doing anything about your debts, the worse they will become. Don't go into denial and kid yourself it's not a problem to spend more than you are earning. There are plenty of debt solutions even for the worst debts but a debt help expert will be able to advise you on the one that is best for your situation.