The first place to start dealing with debt is to stop spending more than you can afford. If you are spending money on credit, it’s likely that you are not managing your money that well.

Start putting aside money every week so that when unexpected costs come up, such as your car breaking down, you don’t need to reach for your credit card.

You can’t manage your money effectively if you don’t know where it’s going every week. Most people will only have one or two sources of income, but their list of expenses can be very long.

Start writing down what you spend money on each month and break that down into different categories. There are even apps you can use to help you track your costs.

Most people get their weekly pay cheque and go out and spend money, leaving their debts to the last minute. You should really be doing this in the opposite order.

Start by paying off all your debts and bills as soon as you receive your pay. Then put some money aside for savings. Then, everything you have left can be spent on your various expenses.

This way you are making yourself save and manage money by only spending what you can afford.

If you have a number of high-interest debts on things like credit cards or unsecured loans, it might be worth speaking to a broker about how you can consolidate your debts.

Debt consolidation works by rolling all of your high-interest debts into one loan with a lower interest rate. This will save you money on interest and makes managing your repayments a lot easier.

Then when you get your pay cheque, you are only paying off one loan. Be sure not to pay with credit in the future.