Of course, debt is not necessarily an evil. In days gone by many people prided themselves that they always saved up for something in advance of purchasing it, and no doubt there are many people around with similar ideas, but in today’s society debt is a basic fact of life.

With student loans, free overdrafts for undergraduates, and taking out a mortgage in order to purchase our first rung on the property ladder, we are part of a society in which debt is encouraged from a very young age.

Unfortunately, one thing in which we receive little guidance is in managing debt. Many new things have been introduced into education over recent years, but debt help has not been one of them. As a result, many people find that debt is something which is very difficult to manage.

There are several options for finding debt help, and the best place to find it might depend on individual circumstances. It the situation is not urgent and it is only simple advice that is sought, then one of the charitable organisations such as the CAB might be the answer, though you might need to wait for a month before you are able to speak to anybody.

If your problems are more pressing and you feel that you might need more than just advice, for instance you might need help with a debt management plan or you are even considering an IVA, then you are more likely to find what you need with a professional debt management company.

These companies proved initial advice without making a charge, though for services such as implementing a debt management plan, a fee will be charged however in many circumstances the amount of money that these companies can save their clients is at least balanced by the fees they charge.

• About 43 percent of American families spend more than they earn each year.
• Average households carry about $8,000 in credit card debt.
• Personal bankruptcies have doubled in the past decade.

If you are part of the debt demographic, you are not alone and there are plenty of resources available to help you in your time of need. One such option is a debt reduction company. For a fee, these businesses will help consumers with debt negotiation, debt consolidation, finance advice and other types of help necessary for getting out of a financial hole. For those who are already in debt, the thought of handing out another dime to improve the situation may not sit well. Before you put your trust into a debt reduction company there are steps you need to take yourself:

• Build a Budget: The paid professionals are going to ask you for your expenses versus your income and then analyze where you can cut corners. Save the time and figure out where you’re bleeding cash yourself.
• Organize Your Debt: Instead of tossing aside the past due bills, you need to look at the situation at hand. Organize by necessity, due date and interest rates. Prioritize to keep your lights on and food on the table.
• Credit Card Debt: One service offered by debt reduction companies is negotiating with your credit card company. Once you gain the upper hand on your budget and know how much money you can afford to pay, give your card issuer a call, calmly explain your situation and make them an offer on the existing debt. Honestly, that is what the paid guys will do.
• Find Free Help: The web is ripe with plenty of reliable advice on how to reduce debt so you can gain the upper hand. Public libraries have computers so you can conduct your search for free.

If you have tried all the above and still cannot solve your debt crisis, now is the time to consider a debt reduction company. Wondering if you can trust them in advance to providing them with all your most confidential financial information is the wise move. The great news is that there are plenty of debt reduction companies from which you can choose and trust. It will be up to you to conduct your due diligence on the matter and the Better Business Bureau, friends and the web can all help you find an appropriate resource to use.

 A debt management company will offer free and confidential advice to those who seek out their help, and all of the services given will be completely impartial. All the experts are trained in dent management, and they will be able to give details of all the programmes that are available to those who are struggling with money. The debt experts are also trained in the legal aspects of all the debt management programmes, so there really is a large benefit in contacting them rather than trying to sort out your debt management issues on your own.

 The debt experts will know the details of all the payment plans, and will talk you through them step by step. There are a large number of options available, including IVAs (Independent Voluntary Agreements), debt consolidation, remortgaging and other things. After going through all your options the expert will advise you which process would be best, and you could then have a payment plan set up within a couple of minutes.

 Contacting a debt management company is one of the best things that a person who is in debt can do. It will help you to finally gain control of your finances, and you are much likely to stay out of debt as a result. It is a much easier option than trying to sort out debt yourself.

At this moment of financial crisis, many families are finding it difficult to make ends meet.  It can be really tempting to take out loans or credit cards, or even remortgage in order to raise finance but, if you can avoid debt, it’s always best not to use these methods, however I appreciate that’s not always possible. You could also consider companies like Debt Free Direct to help with your debt problems.

These are my top 5 tips to become debt free:

1. If you can use your savings instead, do that.  I’m amazed by how many people there are who have savings AND card debt.  Savings interest rates are low at the moment, only around 2-3%, and many credit cards and loans have rates many times higher than this.  For store cards, you’re looking at around 30%!  So the interest you make on savings is a lot lower than what you’ll be paying on the debt. Therefore, it’s much better to spend savings instead of putting it on a card.

2. If you don’t have savings you can spend or pay off debts with my next tip is to see if you can work any extra hours at work, or take on an additional job, if it’s possible.  That way you can make some extra money which you can spend instead of increasing your debt.

3. Don’t use credit cards to take out cash.  Some people aren’t aware of this but the interest rates can be much higher and start to apply sooner on cash taken out with credit cards than normal transactions. If you use your credit card to take out cash you could be saddled with expensive charges and interests that could otherwise be avoided.

4. If your family or a close friend has the means and is willing or has offered, consider asking if you can borrow money from them instead of from a bank.  They might not charge you any interest but please remember not to take advantage of your family’s generosity, and come to an agreement when and how you will pay the money back – AND STICK TO IT to avoid any rows between family members.

5.  This is the most obvious one of all but it’s so easy not to pay attention to this and I’m sure many of us have been guilty in the past.  This is especially important now with the threat of a recession looming.  If you can’t afford (it and it’s not an essential item like food or electricity) don’t buy it!

Of course this is not how the government tells us it sees it. According to the government paying to get educated is an investment in one’s future, presumably in much the same way as borrowing more money is an investment in the country’s future.

Have you ever asked where does the government borrow all this money from? If you don’t know the answer you might be a little surprised. It is in fact from you and me pal – yes it is us who have lent this country some forty odd billion pounds this year. This is done through the issue of gilts which are sold via the Debt Management Office and other government bonds that are bought by investors such as pension funds using our money.

Getting back on track, the cost of getting educated is going up. This is how it breaks down. Tuition fees are currently £3,225 per year. These are going up; in fact Lord Patten the chancellor of Oxford University says that they are “preposterously low”; expect £5,000 before too long.

Then there are living expenses, and nowadays living isn’t cheap. Even cider has gone up 10%. The average cost for food, rent, travel and entertainment at University is around £690 outside London and considerably more inside.

That means, that to be a student for three years will cost you pretty close to £84,000. That is a serious amount of cash. Naturally you can work during the vacations to save some money; in fact most students need to.

It takes on average around15 years to repay a student loan, and sometimes a lot longer. Then there are credit card debts, student rate overdrafts which have a nasty habit of metamorphosing into standard rate overdrafts shortly after graduating.

Getting educated is a costly affair.

If you’re on a tight budget, make sure you know exactly how much money you have spare. Use a spreadsheet program like Excel and have a column of income (whether from a full-time job or online survey sites) and a column of expenditures. For each month, put in the outgoing column everything you know you will be spending money on, such as rent, food shopping and electricity bills. For the latter two, work out how much you normally spend, and then add a little more as a margin for error.

Once this is done, work out the difference between income and outgoing for that month. This is the amount you have left over to spend on non essential things, such as going out or buying DVDs. Although this isn’t always the most accurate way of tracking your levels of spending, this is a way to spot any possible causes for being in debt. You may notice that you are leaking money in a certain area of your personal life that has a knock on effect to all of your other expenses. By identifying this, you can improve your debt management skills dramatically.

It’s a very good idea not to spend all of this “spare money.” Each month, try to have something left over that can go in a savings account. After all, you never know when the car will break down or the boiler stop working. It’s incredibly useful to have a supply of money ready for emergencies.

Besides, if the amount in the savings account gets higher than you need, you can always treat yourself to something really special. But bear in mind if you have outstanding credit card payments to make, it can be better in the long run to pay of these debts early. That way you can avoid wasting money on interest charges.

One tip, that may seem difficult but is one of the most important, is to save up a $1,000 emergency fund. These finances should only be used in cases of strict emergencies. Expenses that can be planned or saved for, such as Christmas or Birthdays that fall on the same day every year, do not qualify as an emergency.

You should also get an overview of your finances and determine what your expenses are, and what your income is. How much you make a month vs. how much you spend are important statistics to know, as this will be your budget in every day life. It is important to be honest with yourself and include every expense, even if they are obviously unnecessary.

Another method to reducing your debt on your own is called the ’snowballing effect’. First, make a list of all your loans, organizing them in ascending order, starting with the smallest. Then, pay the minimum on all the loans except for the smallest, and use the extra money you have left over to make bigger payments towards this one until it is paid off. Once that is paid off, continue the same way with the next smallest, and slowly reduce the amount of loans you have one by one.

The definition of consolidation is to bring together several different parts into a single or unified whole. Online you can find these third party organizations that offer “Debt Consolidation” and they will usually offer one of the following services: consumer credit counseling, debt management, home refinancing, loan consolidation, or credit card debt settlement. These types of organizations will combine all of your debt into a single, manageable monthly payment and in turn pay off your credit cards individually. Debt management such as this helps to relieve the stress of several monthly bills in the mail, and trying to keep track of all your payments. It is also a good option for those who are hounded by credit card calls for missed or late payments.

Accumulate this information before you enroll into a consolidation program:

• Check the company you are going to work with on the web. Read reviews or articles written by previous customers.
• Gather data of two or more companies and compare them to see which company is offering the best consolidation plan to suit your needs.
• Attend a credit consultation session and check with them if the program you’ve chosen suits your needs and will help you in the future.

Once you select a program there are some things that you should not do -

• Don’t incur major expenses by buying more unwanted good or services while you are working with the program
• Don’t take anymore Credit Cards
• Don’t swipe your Credit Card to the maximum limit
• Avoid making any balance transfers

These are important as you can focus your financial resources in getting rid of your credit card debts rather than piling on new problems.

Living debt free means living without the burden of credit card debt, bank loans and loans attained through finance companies. Too many people are making payments on numerous debts each month that quickly absorbs all of their income leaving little money for anything else they need.

In many instances, borrowing money or obtaining credit cards is so easy and quick, that we often forget about the consequences. While having one credit card that is only used for an emergency is a good idea when you don’t always have cash on hand, many people have several credit cards that are all charged up to the limit.

If you’re one of the lucky few that only has a minimal amount of debt, you can help to keep it that way by being more cautious and aware how you make purchases. If you’re already in too much debt, then your best option is to consider debt consolidation or debt management.