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Debt is an ever growing problem for our society. Huge numbers of people are declaring bankruptcy every month and far more are struggling to meet their minimum payments.

The effects of bankruptcy can be far reaching and can impact people’s lives long after the bankruptcy has actually ended, making it difficult to obtain credit and even spoiling many employment opportunities when companies credit check potential employees.

For some, it may be their only option but for many, there may still remain a chance if they take action.

47% of credit card holders only pay off the minimum balance on their card each month. This is the worst way to pay them off, guaranteeing that you will still be in debt for many years to come.

It seems to be almost the norm in our culture to think that we are owed something and that we should be able to get the things that we want as soon as we want it. The banks and credit card companies have spent allot of money trying to convince us of this. That way, they can keep us owing them money and working for them forever!

Fortunately, there is still time for most of us to avoid the inevitable if we make the change now. Here are my top 7 tips to get you out of the debt trap.

Tip 1. Write down all of your debts. It sounds simple, but you’d be amazed at the difference that this one simple step can make. Make a list of all of your debts, list the amount, who it is owed to and the monthly repayments. This can be hard as it is difficult to face up to this problem, especially if you have been hiding from it for some time. It is the most important step though so get started now.

Tip 2. Prioritize your debts. Which are the most pressing debts? If you stand to lose something (like your house) by not paying then that is the most important debt. Next, if you have already had trouble and have come to an arrangement with a creditor, you should try to stick to it. Next, list your debts by interest rate, highest to lowest.

Tip 3. Get rid of your credit cards. If you don’t have them then you can’t make it worse by using them. It may be scary at first but you will soon get used to managing without them.

Tip 4. Examine your credit report. Your credit report shows you your payment history. You can get a copy cheaply from many places online. You should check it for any errors that could harm your credit rating and write to the companies concerned to have them corrected. This will ensure that your credit problems do not cause you trouble into the future.

Tip 5. Make a budget and stick to it. A budget can be the single most important step that you can take to not only get out of debt but also to ensure that you start to prosper financially, no matter where you are now. It is actually pretty easy to do. You can find easy, free instructions on my website on putting your budget together.

Tip 6. Never swap unsecured debt for secured debt. Companies will throw offers at you once they learn that you are in debt trouble and you are a home owner, but they will reposes your home at the first opportunity if you start missing payments so don’t do this unless you have no other option and always seek impartial advice first.

Tip 7. Don’t do it alone. There is plenty of help and advice available to you; you just have to look for it. Talk to debt charities, I guarantee that they won’t be surprised or shocked no matter how bad your situation is. They will however be able to offer good and helpful advice.