If you have debts, the worst thing you can do is ignore them and hope that they will go away. This is never a solution that works and it could actually make your current situation worse. If you are in debt, there is a need to make steps to getting out of debt and this guide will help you.

You have to acknowledge your debts

No matter the problem, admitting and acknowledging your problems is the first step to moving on. If you are experiencing difficulty with your finances, admitting you have problems and acknowledging you need help is always the starting point. This is something that all experts agree on when it comes to offering get out of debt advice.

You need to list your income and your outgoings

Sometimes you don’t realise what your incomings and outgoings are until you write them all down. You may feel that you are on top of your finances but it isn’t until you have the figures in black and white that you realise what your financial situation is. Drawing up all of your financial earnings and expenditure provides you with the platform to move forward.

Try to maximise your income

It makes sense that the more money you have coming in, the more money you will be able to spend. This means looking at ways to improve your income will help and you should always make sure that you are getting everything you are due from the Government. It may be that you are entitled to:

• Job Seekers Allowance
• Working Tax Credit
• Child Tax Credit
• Income Support
• Disability or Incapacity benefit
• Maintenance
• Housing benefits or council tax relief

You may not be entitled to benefits but if you are, you need to make sure that you are receiving everything which is rightly yours.  Other ways in which you may be able to bring in additional income is to find part-time work or to take in a lodger.

Reduce your expenditure

If you are looking to get out of debt, lowering the amount of money you spend is a great step. You should review all of your outgoings and see if there are any non-essential areas where you can save money. It may even be that you can reduce the amount of money you spend on servicing your debt by opting for a guarantor loan to consolidate your debt. This is a step that many finance experts recommend and if you want to make control of your expenditure, reducing your spending is a very sensible step.