How To Get Out Of Debt

Why We Get Into Debt

Most of us have phases where we spend money freely. There are many reasons. It could be because

• we're compensating for something
• think we deserve a reward
• want to look good at our friends wedding
• don't want to miss out on the trip of a life time
• haven't learnt how to say no to ourselves, friends or family

It's often not until our credit card or store card statement arrives, that we realise we spent more than we could afford.

Sometimes it doesn't register - especially if you don't bother to open the statements.

I have a friend who is over £10,000 in debt, yet still spending money like water. It's because she earns a lot of money , knows that her salary will keep on increasing and that she's likely to get bonuses. She earns a lot and thinks she should be able to buy whatever she wants.

But what happens if you're made redundant or sacked? It does happen and sometimes with little notice.

Perhaps then you begin to realise that you're in trouble.

Maybe you don't even think you're actually 'in debt'.

If you have a loan of any kind, you are - and it's costing you money - the interest you pay every month mounts up, and it's money you have nothing to show for.

If you've worked for it it should be working for you, not adding value to your lender.

The only type of debt that isn't unwise, is mortgage debt - it's relatively cheap, we wouldn't be able to afford to buy our home without it and we have an asset that's growing in value.

If things seem bad, don't panic. Instead, take control of the situation. Once you start taking responsibility you'll begin to feel better.

If you're seriously in debt it's vital that you contact your creditors before they contact you. The debt won't go away if you ignore it, it will simply get worse and become more of a problem.

"Money is not your Master. It is your Servant! If you can truly take on board that fact - and it IS a fact - you will suddenly discover that you are the 'controller' and not the 'controlled'."

People get into debt for many reasons. The depression that sometimes accompanies dramatic change in circumstances like losing a job or a business or a loved one, can make it difficult to find the will or the energy to deal with it.

Take the first step to becoming debt free today. Face things and work out a way a of dealing with them. Don't ignore the problem. The longer you wait, the longer it will take to sort out - and the harder it will be to deal with.

The Motely Fool have a complete guide to getting out of debt.

The guide will help you to take stock and assess your debt problem. It also tells you how to deal with creditors and where you can go for help.

And if you're not in debt, Martin Lewis has many articles and tips that will help you to save money and  make your money work harder. Take a look at his website www.moneysavingexpert.com I think you'll be glad you did.