We live in a credit based society and of course we need credit to buy our homes and other large purchases. However, personal debt: credit cards, overdrafts and personal loans, can cripple cash flow.

Sad stat…

In 2019 the average personal debt stood at around £32,000 including mortgages, per person and on average every single day four people were declared insolvent or bankrupt.

GO SNOWBALLING

List your current financial commitments, no matter how small. Understanding the full picture is a big step towards becoming debt-free. Now, take the smallest debt and, whilst continuing to make minimum repayments on all the others, throw as much money at the little one as you can. When it’s paid off start working on the next one on the list.

Debt snowballing creates an ever-increasing monthly repayment amount which can have a very positive effect on repaying outstanding bills.

But what if we’re struggling to find the cash to start with? There are many tips and tools available, and most demand that we change habit or two.

READ MORE: Top savings tips

Try these to get started:

1. Create a budget – something realistic that you will stick to.

2. Use your hobby or skill to generate additional income.

3. Cut down (not out) on the non-essentials.

4. Sell your stuff from home: garage sales, local community noticeboards or online can help to clear the clutter and top up the bank balance.

5. Plan a spending freeze – for a weekend or a week you commit to no shopping. Live off the food in your freezer and store cupboards, no new clothes, gadgets or takeaways. Doing this for a few days can put you on the first rung of the debt-free ladder.

For more advice on managing debt, visit nationaldebtline.org or Christians against Poverty at https://capuk.org