Average uk borrower struggling with debt owes nearly £17,000 – here’s how to get back on track and stay there _ this is money

‘The problem is when people cannot manage to pay their everyday expenses or have an unexpected income shock and turn to credit to continue their standard of living, rather than knowing how to adjust their budget accordingly.’

Clack continues: ‘If you think you are falling into debt again, it is important to reach out straight away and be honest. Harry mileaf electricity 1 7 pdf Talk to your family, bank, creditors and debt advice providers, as they may be able to provide you support.’

With added pressures on pay packets families are finding it harder to stay out of debt after working their way out of it – so how can work your way of the red and stay there?

Before you start working your way out of debt, you will need to sit down and make a list of all of all of your outgoings and how much you owe.

This will help you figure out your top priorities, who you owe the most to and which debts are the most urgent to repay with the most serious consequences.

Less urgent debts will still need to be paid off if you have money left over, but paying off credit cards, overdrafts, loans will typically be less urgent.

Drawing up a budget will help figure out how much money you realistically use to pay off your debts each month, and help you figure out where you may be able to trim the fat.

PayPlan’s Jane Clack, says :’ Forget the spreadsheets and fancy software; a simple pen and paper is enough to give you a clear picture and help you budget going forwards. E sampark electricity bill payment Make sure you write everything down, from the monthly bills to the midday snack break.’

Rearranging the dates of your direct debits could help make sure you have enough money in your account and prevent any extra charges or borrowing costs.

It is always wise to speak to your creditors and explain your situation as they may be willing to help by setting up a repayment plan, freezing interest or even writing off your debt completely depending on your situation.

If you only pay off the monthly minimum payment on your credit it will take longer to clear your debt and you will end up paying more in added interest.

PayPlan research showed that nearly 30 per cent (29.8 per cent) of people use a credit card to pay when they shop while just under 40 per cent (39.6 per cent) swipe their debit card.

Clack adds: ‘Paying on plastic doesn’t really feel like we’re parting with cash so we tend to spend more. Electricity grid uk Whether you’re trying to stay out of debt or are working through a debt plan, pay with notes and change to reduce impulse spending.’

This may seem like an obvious piece of advice but with more disposable income you will be able to bump up your repayments and get out from under your cloud of debt quicker.

Jane suggests: ‘This doesn’t mean you need a second job – maybe you could take in a lodger, rent out a car parking space, sell any unwanted items at car boot sales – there are a lot of ways you can make a little bit of money that might make all the difference.’

It could be worth running a few searches through a price comparison site to see if you might be able to find a cheaper deal on your household bills.

Switching utilities provider could shave as much as £300 or £400 off your bills each year. Gas stoichiometry calculator Try T his is Money’s comparison tool powered by Energy Helpline.

Make sure you are paying as little as possible for your broadband and use a comparison site to search for cheaper insurance rather than automatically accepting any renewal quotes.

If you are struggling with debts, picking a current account with a cheaper overdraft will help make sure your borrowing doesn’t get hugely inflated and help you avoid clocking up extra fees for going beyond your limit.

On one hand consolidating existing credit card debt to a specialist card can help you pay off your debts quicker without hefty standard interest bumping up the balance.

If your credit rating has remained intact and you know you will be disciplined about your repayments you might be able to apply for a balance transfer credit card.

But you will need to make sure not to use the card to spend on at all and set up a direct debit to make sure you clear it before the interest jumps.

But in the long run if you have suffered with debt problems and your credit rating has taken a hit you may need to consider one again as one of the best ways to help repair any issues.

Jane Clack, financial adviser at Payplan, says: ‘If you’re using a credit card to rebuild your credit rating, choose one specially designed for this with a low spending limit and only ever use it when you know you can pay it straight back.’

While interest rates on savings accounts are currently pitiful, getting in to a habit of adding money to a savings pot is important once you have cleared your debts.

Clack explains: ’Even if there’s nothing you particularly want or think you need to put money aside for, having this means you’ll be less tempted to borrow and will have money to cover you if anything happens. Electricity invented in homes No savings are ever useless – you never know when the boiler might break down!’