I`m in debt - what should I do?

If you`re in debt and not sure what to do about it, the important thing is not to waste any time. In general, the sooner you address your debt problems, the easier they`ll be to sort out.

Ignore your debts and you`re running the risk that they`ll keep on growing - leave it long enough and one day you might find that bankruptcy`s pretty much the only option you have left.

Having said that, doing the wrong thing can be even worse than doing nothing! It`s important not to fall into the trap of thinking a certain approach will work (or won`t work) for you just because it worked (or didn`t work) for someone you know. Everyone`s finances are different, and the approach that`s right for one person could be totally wrong for another.

I`m in debt - what should I do?
It depends on your situation - not just how much you owe, but how much you earn, how much you spend, how good you think you are with money…

If your debts aren`t too serious but you`re determined to clear them all the same, you may be able to do so with a bit of careful budgeting - once you know how much money you have coming in and how much going out every month, you should be in a much better position to figure out where you can cut back. This budget planner should help you do this.

If you`re getting worried about your debts, it`s well worth talking to a professional debt adviser. Tell them where you stand and what you`re worried about, and they should be able to suggest a way forward - it could be a specific debt solution, or just some advice on how to manage your finances more effectively.

If you find that your debt situation is getting noticeably worse every month, then you really should talk to a professional without delay.

Why am I in debt?
It`s a serious question: why are you in debt?

Some people end up with debt problems because they`ve run into some bad luck. Others have simply spent more than they can afford. And many people are still spending too much, whether it`s on their social life, their holidays, their mortgage/rent, their car…

If you`re tackling your debts, it`s vital you look at the underlying reasons for your financial problems and try to learn from any mistakes you made. If you don`t, you might sort out your debts - but find yourself `back at square one` a few years from now.

To talk to a debt adviser, call 0800 161 3516 or click here to request a free call-back.