Money management is the key to getting out of debt effectively, according to advice given by Sky News.
In a guide entitled Top Five Ways to Clear Your Debt, it is recommended that people keep a diary of their purchases and withdrawals to highlight where money disappears to each month.
Also effective for avoiding financial problems is writing a monthly budget at the beginning of each which considers all possible expenditures; the planned budget can later be compared to the diary of actual spending.
"If you can start managing your finances better and living within your means, this is the ideal way to get out of debt," the article states.
If the situation is serious and involves high levels of debt, the news provider suggests that a consumer may want to consider debt consolidation or an individual voluntary arrangement.
In related news, the Thrifty Scot recently advised debtors to pay off more than their monthly minimum in order to clear debt more quickly.
