It seems like these days if you are thousands of dollars in debt, then you are very fashionable. You get VIP treatment and the red carpet comes out, the more debt you are in, the more you are respected, as long as you keep paying it back every month and on time. There seem to be rewards in every magazine and website because you are in debt. So is there any wonder that people end up with their debts spiraling out of control.

Because it is so easy these days once you are up and running with a few credit cards, the odd loan, a mortgage, a couple of catalogs and your name on the electoral register you are laughing. Lenders are just falling over themselves to give you more and more credit. But there comes a time when you have to screw your head back on and say to yourself, wait a minute how much is all this costing me, and when am I ever going to be out of debt.

The time you realize is when you have responsibilities, and you realize that it isn't fashionable, or cool anymore, because you are not driving around in your new Mercedes convertible, you had to get rid of that and had to get a ford Galaxy, now it is about economy, safety and practicality with regards to the children. Some people realize more quickly than others, but some continue with their bachelor lifestyle even when they are married and have a few kids, it isn't until the big wake up call arrives and then it is too late, because there doesn't seem to be enough money to go round anymore. Now is the time to take stock, before you get behind with anything at all. At least you have realized there is a problem, and still have a choice.

Okay first you need to either increase your income or reduce your outgoings, preferably both. Nevertheless, we will deal with the debt first. You need to take all of your credit cards and trawl the Internet to find as many cards as you can with 0% on balance transfers. You then add up all your cards and apply to the ones with about a 12-month period, which is interest free. As soon as you have that sorted, at least you are not paying interest on your credit cards. If you know you can control your spending, you can make money this way; you just need to be extra perceptive. You get a high interest account and put the total balance of your available new credit from your new interest free credit card, and leave it there, so it can start earning you interest; now you should be seeing how you could get your debts to actually work for you.

If you have a mortgage or home

• 1
• 2
• 3
• next page >>

---

Add your voice

Know something about How to manage your debt?
We want to hear your view. Write now!