Getting out of debt

Getting out of debt poses a major challenge to many people. The massive growth in easily available credit - credit cards and store cards in particular - has led to an enormous increase in consumer spending, accompanied by debt repayment problems.

There is nothing wrong with having some debts. It is now an accepted part of modern consumer living. Borrowing money, when done responsibly, can help you through unexpected emergencies, pay for essentials like a car for getting to work, and can be used for adding value to an existing asset, like improvements to your house. But borrowing has to be repaid sometime.

It is not always the larger expenses that cause the most financial mayhem. The accumulation of many smaller amounts of debt over a period of time, often have a greater impact on the overall debts problem than is immediately apparent. And it is easy to overlook an expense that only occurs a few times a year, but which can then place an additional strain on your finances.

So at all times, rather than relying on guesswork and trusting your memory, you should know your overall financial position in some detail, by having a written record of it. This will help you stay in control.  That written record is your budget, a personal tally of all matters financial, and if you are serious about getting out of debt, you will create a budget of your own as soon as possible.

Don't fool yourself that your debts will go away. The quicker debt problems are rectified, the less likelihood there will be of a financial disaster. If you can't sort your debts problem by yourself, seek help from those who can asap.

• What is your attitude to debt?
• Formulate an action plan to get out of debt