I am assuming that you are in a situation whereby your income for example; is £2,500 per month and your expenditure is £3,500. This is not a good position to find oneself in. A better position would be if you were earning £2,500 per month and your expenditure was only £1,800!!

It is so easy to despair when you encounter your first financial crisis. You're not alone. Many people face a financial crisis some time in their lives. Whether crisis is caused by personal or family illness, loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. The important thing to bear in mind is, not to panic! We have all done it. We have all succumbed to temptation of freely available credit. We have all signed on dotted line for items based purely on self- gratification only to regret decision at a later date. Of course, once it starts it tends to spiral out of control and you then find yourself in this current predicament.

The first thing you have to do is take stock of your debt. At this point you should be very realistic with yourself and itemise every expense no matter how trivial it may seem. Most people fail at this hurdle because they lie to themselves about expenditure. They conveniently forget about certain items, make excuses about other bills or blame problem onto someone else. Anything in fact, except facing up to reality check. I must stress again, that in order to stop downward spiral of debt you must be brutal in your approach. If you really cannot face breakdown of your expenses then get someone you know to help you.