By Leah Karimi

You’re probably reading this article because you’ve amassed a reasonable amount of debt, and are thinking it will be impossible to ever escape from under it all. But getting out of debt, and living out of debt is not simple. But it can be done.

First of all, destroy your credit cards, or keep only one. Only use that card to purchase "must haves", until you bring your expenditure entirely under control.

Second, start recording your expenditure. The plan of writing down what you spend is a concept most individuals find frustrating at best, and worthless at worst. But, this is in fact your way out of debt. You’re in debt because you used up money you didn’t have. Note down each shilling you spend.

Classify your expenditure into groups of "must have," "should have," and "like to have," and give priority to the must haves, over the rest.

Do not quit. You did not get into debt in a day, and you will not get out of debt in a day. Immediate repairs don’t last. However, discovering how to control your cash can bring great peace into your life.

Debt consolidation

Consider debt consolidation. Though it may be enticing, doing it on your own will help you master the tools you need to repair your personal crisis and evade getting in this condition again.

Create a table that shows how much you owe to whom (be certain to incorporate the interest rate on this table).

Begin making monthly payments to every creditor. If you pay off one thing completely, use the money available to payoff another debt.

If creditors are harassing you, it is best to stop avoiding them. Instead organise a meeting with them, where you can work out a payment plan.

Ask your credit card company for assistance. They aren’t likely to forget your debt. But they may be keen to lessen your interest rate. If your interest rate is 12 per cent or more, inquire if they would be agreeable to slash their rate in half.

You can choose to refinance your loan, using the funds saved every month to pay off the additional debt. However, use this option only as a last resort.

Find a way of getting additional income. Do you have an expertise or a hobby from which you could make some income? If so, this cash could be placed straight toward debt, and might make a completely fresh stream of income.