It's easy to get into debt. Credit cards and overdrafts are readily available and there are times when it is tempting to dip into them, especially over the Christmas period. Additionally, many of us build up student loan debt from our time at college or take out a personal loan to finance the purchase of a car or some other major expense.

Whilst the free availability of credit facilities can be convenient, there is no doubt that debt is a drain on your finances. It can be viewed as an anchor weighing down your finances and preventing you from maximising your long-term returns. Of course, ideally, you want the bank to be giving you money through interest payments, rather than the other way around. In worst case scenarios, there are unfortunately many people for whom debt has become financially crippling and a source of misery.

Whether debt is a crippling problem that, by necessity, you now have to address, or whether it's just one of your New Year resolutions to improve your finances, then I hope that this article will help. It can be daunting to suddenly have to face up to your debt position but I will cover off the recovery actions in a step-by-step (and bite-sized) format that hopefully won't be too scary.

Roadmap to eradicating debt:

1. Review your finances, both your incomings and outgoings. You need to understand how much interest you are paying and how much you're incurring in charges. You also need to know how much you can afford to put into paying off your debt each month?

2. Switch debt to a lower interest rate option. Some people who have debt on a credit card think that they won't be able to switch to a credit card with a lower interest rate. This, in most cases, is incorrect. If you have significant credit card or overdraft debt, consider consolidating your debt to a loan. Again, make sure you shop around to find the best available rate. Remember to review your mortgage too if you have one. It is usually our biggest debt. Check that the rate you are paying is competitive? If not, switch to another provider. Some quite large fluctuations in mortgage rates have occurred in recent months, emphasizing the value of reviewing your current deal.

3. Pay off more than the monthly minimum amount. This advice only applies where this option is available (i.e. you won't be able to do it on a fixed rate loan). Remember that interest is the real killer when you're in debt. Your task should be to minimise the amount of interest you're paying

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