Help with debt problem * advice on how to get out of debt * help with a debt management problem * changing spending habits

The UK has the highest level of debt per capita head in Europe. We live in a consumer society where people have come to accept debt problems as a way of life. The "I want it now" syndrome has seen debt spiral out of control to such levels that the Government is now taking steps to try and help the increasing number of people seeking help.

Go to the start of this article about the UK debt problem.

Get out of debt * stay out of debt * save money * earn an extra income

This article covers 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 bills and even earn additional income.

There are scores of reasons that make up the whole answer, low interest rates that have remained low for almost a decade, the banks and finance houses breaking all the commonsense rules about lending in their frenzy to lend money, the emergence of credit cards in the last 25 years and store cards more recently.

Everyone wants to lend you money and they are not particularly interested in whether or not you can easily pay it back.

Nowadays, everyone expects to own a new car, or two, have their windows replaced, have the £20,000 conservatory built, take their annual holidays, go shopping for clothes every Saturday, own a bigger house, own a holiday home and generally live up to if not far beyond their means.

Whilst some of the blame can be laid at the feet of the UK money lenders, people have also got to accept responsibility for their own spending habits. The buy now, pay later attitude is the idiots route to debt problems and so unnecessary.

The rush to buy the latest technology is so arrogant and more importantly so wasteful. I will give you an example.

Two years ago, one of my colleagues rushed out to buy the latest flat wide screen television. It cost him nearly £1400 plus a further £400 for the 5 year maintenance contract. Being a heavy borrower, but "having to have it now", he put it on finance at 19.6% over 5 years.

By the time he has finished paying for it at nearly £42.00 per month, it will be outdated and would have cost him over £2,500.00.

Another colleague went out in this year's January sales and bought exactly the same model for £599.00 for cash. In theory, he had put aside £42.00 for 18 months, been patient, waited for the price to drop (they always do), waited for the sales and picked up a bargain. Not just for half price but for 25% of the price that our colleague will ultimately pay.

He didn't bother with the high cost of a maintenance contract because, as he explained, he knew that the product had a good service history and he would expect to replace it within three years. Around about the time that our colleague would be finishing paying for his.

There is an important lesson here. The colleague who borrowed on finance, unless he gets a substantial rise or gets promoted (which are both unlikely as he is a twat), when he comes to renew his television, will most likely have to use finance again to buy his next TV. Whilst the other colleague, could use some of the £1800 savings to buy his next TV and still have change.

This principal can be applied to so many aspects of people's attitudes and I will cover these later. However, if you are deep in debt and unable to save money on a regular basis, there are five things you need to do, to get your life back on track.

1. You have to change your mindset and attitude to borrowing money. Is the purchase an absolute essential or simply a whim? Do you have to have it now? Can it wait until you have got your finances sorted?
   
   

2. Take a close look at your current borrowings. Would a debt consolidation mortgage at a cheaper rate be a sensible option? Roll up all your debts for one last time, to reduce your outgoings and start to accumulate capital for your next major purchase. Make sure that there are no early get out penalty clauses, should you want to pay off the mortgage early.
   
   

3. If you really are struggling to meet your debts and have debts in excess of £15,000 then you should investigate the benefits of an IVA.
   
   

4. You should also look at ways to reduce your household bills. This doesn't just mean switching to a cheaper utility supplier. This involves changing the way you shop and what you buy.
   
   

5. Having cut your overheads and monthly outgoings, would an additional income earned at home come in useful? You could then take this additional income and pay it into a savings account and start to accumulate money for your next major purchase or paying your mortgage off early.

UK society, due to television and the press, are under constant pressure to either achieve or if you can't achieve, to own all the chattels that society places in front of you as the must have next thing. Keep reading if you have debt problems and need further ideas or debt advice.