How to get out of debt

Bills
Remember, knowledge is power...don't leave bills unopened: this leads to 2 sources of stress, the first being "how much is it?" the second "how am I going to pay it". Open the bill, what's the worst that could happen? Will that piece of paper fly out of the envelope and strangle you? No, it is only paper, read it, confirm what you owe. Now you have eliminated 1 stress source. Whatever you do with that bit of paper is up to you, make it into a paper plane, burn it etc (of course, note the amount & payment details first!)

Worrying
Worrying about paying debts will not get the bills paid, taking control and devising a plan will. Make a list of all debts, including interest rates on loans, storecards, credit cards and on any bank accounts. The rates will be on the statements, if you don't have them, contact the provider who should be able to tell you on the phone. Put the list in order of interest rate, with the highest being at the top.

After essential bills, water, electric etc, the items at the top of this list have to be paid off first, as they are costing you the most money.

If you are unable to pay bills contact the company you owe money to and try to negotiate with them, tell them you are unable, for example to pay the full amount, but will they be willing to accept a lower payment over a period of time? A willingness to pay and a proactive approach goes a long way with most companies.

Citizens Advice Bureau
If you are really struggling with debt- contact your local Citizens Advice Bureau (their telephone number will be in Yellow Pages). They will go through your finances with you and may even be able to freeze interest on certain credit or store cards.

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