How to get out of debt

If your finances aren't going in a right way, now is the time to take control. Read our ten-step guide to getting out of debt.

Step one: Work it out

Decide exactly how much you owe and who you owe it to. Be honest or you'll only store up more problems for the future. If your debt repayments take more than 20% of your net monthly income you are entering a danger zone and must take steps to cut back.

Step two: Budget

Once you know how much you owe you can draw up a budget, including a schedule for repaying your debts. Be realistic and work out what you can afford to repay and still stay within your budget.

Step three: Be disciplined

Don't borrow any more money or take on any more debts until you have repaid what you already owe.

Step four: Watch your daily spending

Take a set amount of money out of the bank at the beginning of the week and give your card to a friend or family member for self-keeping. That way you cannot spend more than you have in cash.