Simple steps to help you take control of debt

If you debts are spiraling out of control, face up to the problem as soon as you can. Here are a few tips on how to achieve financial freedom.

First of all, accept that you have a problem and take steps to find the help you need to tackle it.

•  Even the most conscientious people can run into problems following job loss or divorce. A variety of organizations give free counselling to help you to find ways of paying off your debts.
• Reputable debt agencies won't make you feel guilty, they will help you.

Don't hide from your creditors — they've seen it all before and will view you more positively if you contact them and explain your situation rather than if you just don't pay. They may also be more sympathetic than you expect.

Don't be bullied by heavy-handed or threatening creditors and debt collectors. The courts are here to protect your interests, as well as help creditors get their money.

Need to slim down your budget? Here are some relatively painless tips for trimming day-to-day expenses:

• Walk away from clothes bearing the label "dry-clean only."
• Cut out cable.
• Dispense with Friday night take-out.
• Nix those coffee breaks at the local coffee shop.
• Clip grocery coupons, buy sale items in bulk.
• Avoid prepackaged foods and try generic brands.
• Dispense with one club membership and try jogging, biking or swimming at the local community centre.
• Borrow DVDs and books from the library.

Debt can often feel overwhelming and difficult to discuss, but there are ways to get help. With the right advice and by knowing your rights, you could get your debt under control and work your way out of the red.