Debt problems * free help and advice with your debt problems * How to manage your debts * handle bailiffs & deal with threatening letters

An estimated 40% of the UK have a debt problems. Rising interest rates, store cards, mortgage arrears, credit card spending, outstanding loans, rising household bills, increasing petrol prices all help to compound debt problems.

Get out of debt * stay out of debt * save money * earn additional income

Over the next few pages, we will provide you with a wide range of helpful tips and links to useful services to help you get out of debt, reduce your monthly outgoings, lower your household expenses and even earn additional income.

Imagine being debt and problem free and earning more money to boot.

Nobody gets into debt deliberately. Sometimes it is due to circumstances outside of your control like a long term illness, redundancy or divorce. However, it is more likely to be your poor money management, the "I must have it now because I deserve it" syndrome, and or just living above your means.

For many people, debt seems to be a lifestyle they choose to pursue as a long term process. Re-mortgaging, taking out one debt consolidation loan after another, never changing their spending habits, until one day bankruptcy comes knocking on their door.

To really overcome your debt problems, you have to face a few realities, make a few hard decisions, make some tough changes in your life and stop burying your head in the sand.

You could roll all your debts up into one low cost consolidation loan or remortgage to reduce your monthly outgoings. Bad credit and CCJs should not pose a problem.

Homeowners can reduce their monthly outgoings by several hundred pounds, depending on their circumstances, by consolidating their debts. However, many then continue on the spending spree lifestyle they have always enjoyed and as a result, find themselves having to consolidate their debts yet again, a few years down the line.

If your debts amount to more than £15,000 and a debt consolidation programme is not an option, you may wish to consider an individual voluntary arrangement (IVA).

An IVA is a government approved scheme where a debtor can come to a formal agreement all his or her creditors, to make one monthly affordable repayment. IVA programmes, with the help of a licensed insolvency practioner help you reach an understanding with everyone that you owe money to and can help you avoid personal bankruptcy.

An IVA can be used, depending on your personal circumstances to write off up to 75% of your debts. Providing you meet the monthly repayments, at the end of 5 years, you will be considered debt free.

Once you have an IVA, the bailiffs stop calling, the threatening letters cease and most people experience a huge sense of relief.

However, to truly sort the problem out in the long term (the rest of your life), we need to address the attitudes and mindset that started you on the road to debt; address the real issues and ensure you never get in to debt again.

Most people live right up to their financial limits, about 40% of the UK population live beyond their financial limits and a small percentage live within their financial limits, whether as a result of having a large income or being sensible about how they manage their money.

Frankly, it doesn't matter what you earn, it is your overheads that determine your financial standing.

Family A have a joint income of £100,000 per annum. They have a large house (valued at £480,000) and mortgage of £350,000 to match. They re-mortgaged two years ago to consolidate all their outstanding debts and are looking at this procedure again. They have two big cars, both on finance (£50,000), credit cards (£8,000), store cards (£3,200), take two annual holidays, and recently took out a homeowner loan (£18,000) for the new conservatory they had built.

Despite their comfortable income and consumerist lifestyle, they have little spare cash, are invariably over drawn at the bank every month and are unable to clear their credit cards and store cards.

As a result, family A are paying nearly £3,000 per month in interest repayments. Despite their large house and fancy cars, family A are actually worth 3/5th of 5/8th of sweet FA. Sure, they have what looks to be a comfortable lifestyle but a huge swathe of their income goes to funding their excessive interest repayments. They have little or no savings. One more hike in interest rates and family A could end up in major financial trouble.

Family B have a joint income of £40,000 per annum. They have a modest house (valued at £230,000) and small mortgage (£18,000 outstanding) which will be paid for in 7 years time. They have one modest family car which they paid cash for. They don't have credit or store cards and have no financial borrowings of any type. They take three or four family holidays, mostly spent at their cottage in France. (Bought 15 years ago for £5,000 as a renovation project and currently valued at £70,000.) They have £40,000 saved in various financial products.

Despite their relatively modest income, Family B have plenty of spare cash to enjoy the type of life they want. If they need a new washing machine or 3 piece suite, they can afford to pay cash.

Family B, in fact have a higher net spendable income than Family A. Furthermore, on paper, Family B are worth £290,000 more than Family A.

Despite the glaring differences in their incomes, Family B have succeeded in maneuvering themselves into a strong financial situation where they are not forking out thousands of pounds every month in interest repayments. Leaving themselves in a position where, if necessary, they can buy anything they want and pay cash.

Whilst Family A spend 60% of their net income in interest repayments and when they want to purchase anything, they have no option but to borrow more money.

You don't need to earn a high income to have a decent lifestyle but if your consumer borrowing is out of control, it will become a downward spiral. You should seek help now with your debt problem.