f you are worried about more money going out of your bank account than coming in, then you're not alone.
The average household debt - excluding mortgages - is £9,550, according to Credit Action.
1. DON'T BURY YOUR HEAD IN THE SAND - LOOK AT YOUR BILLS
The only way you can determine where you are financially, and how you can improve your situation, is to face it head on, and that means looking at the scary figures on the credit card bills.
Of course, you have to consider all of your other bills, too, and that means your mortgage, car loans, insurance payments, utility, phone, mobile phone and any satellite or cable TV bills. To save the most money, consider your finances as a whole, not individually.
2. TAKE A REALISTIC LOOK AT YOUR INCOME AND OUTGOINGS
Detail how much money you, or your family, have coming in each month. Calculate how much of that is going to pay debts, household bills, groceries, children's school clothes, your new shoes or clothes, and socialising.
If you have more money coming in than going out, you are going to be able to sort yourself out more easily. If you have more going out than coming in, you have some tough decisions to make, so be strong.
3. PLAN A SENSIBLE BUDGET
By making small changes to your spending habits, you can start to pull yourself out of debt. Now that you know your income and spending, you can identify areas where you can save money.
For example, if you spend £5 a day on coffee at work - which adds up to more than £100 a month - cut it out or see if there is a cheaper way of getting your caffeine fix (use a flask).
Other easy ways to save are by reducing unnecessary clothes buying, shopping around for car or household insurance, or seeing if bundling together your phone, broadband and TV packages saves money.
4. TRY TO REDUCE THE INTEREST ON YOUR DEBTS
If you are paying high interest on your credit cards, then consider switching to a 0 per cent card.
Remember though, for most of these cards, the balance transfer may be at 0 per cent, but any purchases will attract interest - and when you make payments, it is the cheap debt will be cleared first.
Lenders are in this to make money. But play them at their own game, and never use that card for future purchases.
5. CONSIDER CONSOLIDATING YOUR DEBTS - BUT BE CAREFUL HOW
By putting a number of debts into one bigger loan, you can reduce the overall rate you are paying. You can also see how much is going out each month, as you have only one payment rather than many.
Extending your mortgage is one way to do this, and it may be the cheapest method, but your debt would be secured against your property, so if you miss payments, then your home is at risk.
Beware of using debt consolidation services who sometimes offer very high interest rates. Check the Financial Services Authority (0845 606 1234, www.fsa.gov.uk) before you deal with any company.
6. USE CASH WHERE YOU CAN
Limit yourself to a certain amount of spending money each week, take it out of the bank in one, two or three withdrawals, and use only that money.
If you have any money left over at the end of the week, you can put it aside to cover the unexpected.
If you have a fixation with plastic, then cut up your cards so you can't use them. Then you have no choice but to use cash.
7. IF YOU ARE STRUGGLING TO PAY DEBTS, TALK TO YOUR LENDERS
If you are finding it hard to meet your debt payments, speak to your lenders and see if you can come to some agreement.
Lenders may write off a certain amount of the debt you owe, or agree to reduce the interest that you are paying, to free up cash flow.
There is a priority order to paying off debts - HM Revenue & Customs is top of the list - but after that pay your mortgage first and then consider which payments could be more flexible.
8. USE YOUR SAVINGS - BUT KEEP A FINANCIAL CUSHION
If you have savings that are earning a paltry amount of interest, it's worth considering using that money to pay off more expensive debt. If you are getting 1 per cent on a savings account, but paying 7 per cent on a debt, then the gain you make by moving money to pay off the debt is huge.
But make sure you have access to at least three months' money in case you are made redundant.
9. REMEMBER YOU CAN STILL HAVE FUN - AND OFTEN FOR FREE
Reducing your debts takes discipline, but it does not have to be the end of your social life. If you have money left over at the end of the week, give yourself a treat.
Also, there are plenty of places you can visit for free. Quality time does not always have to be paid for.
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