The path to clearing your debts may be short for some however you could be faced with several years of hardship before you are able to clear them. In either case you need to identify the cause of your problem and try to fix it so that it does not happen again.

Most people fall into debt through no fault of their own. It is often as a result of redundancy or reduced working hours, illness or marriage breakdown. However, it may be that you found using credit cards was too easy or you were unable to resist offers of interest-free credit.

One of the key things to remember is that family pressures will arise due to a lack of money and an increase in both stress and anxiety. This is perfectly natural and understandable so don't be afraid to seek help if necessary. Try to keep yourself occupied. You might find it helpful to join a local support group if there is one in your area.

Below are a few practical suggestions for saving money and staying out of debt in the future:

Suggestions for saving money

• Only buy on a cash basis - if you can't afford something save up for it.
• When you go to buy something ask yourself whether you really need it or just want it. Try waiting for thirty days before you buy anything and if you decide you are going to buy it try and obtain one or two quotations to compare prices.
• When you go shopping prepare a list and keep to it.
• Keep your financial statement up to date and live within it.
• Look for ways to improve your income whilst trying to reduce your expenditure.
• Keep your own accounts and always check your bank statement.
• Budget for non-regular bills and expenses. By paying some bills, for example gas and electricity, by direct debit you automatically receive a small discount.
• Educate all members of your family in managing their own finances - you could be preventing much heartache in future years.
• Start a regular savings plan - no matter how small the amount.

REMEMBER - if debts start to build up again seek immediate help before things get too far out of hand.

Some do's and don'ts

• DO be realistic - face up to your true situation and resolve to deal with it - using the help available to you.
• DO get in touch with your creditors immediately to explain your difficulties.
• DO give priority to those debts which may result in you losing your home, fuel supplies or your liberty.
• DO remember that your creditors prefer small payments regularly rather than larger, irregular payments that you cannot sustain.
• DO reply to creditors' letters and court summonses within the time period specified and let them have all the facts.
• DO keep copies of all correspondence, financial statements, debt schedules etc.
• DO attend and/or be represented at court hearings and take all relevant correspondence with you, including your current financial statement.
• DON'T ignore the problem - it won't go away.
• DON'T give up trying to reach agreement with your creditors even if they are difficult and refuse your initial offers.
• DON'T be threatened or bullied into making promises which you cannot fulfill.
• DON'T borrow more money to pay off your debts, especially by taking on more credit or store cards.
• DON'T be afraid to ask for specialist advice - it's FREE call the Consumer Credit Counselling Service on 0800 1381111

This guide is for information only. It does not constitute finacial advice.