How to reduce your debts

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The Times Online has some advice for how to reduce your debts (www.timesonline.co.uk). In summary they suggest:-
Prioritise your debts first to identify those which are most urgent/important (e.g. Mortgage)
Decide strategy – do you want to clear off smallest or largest debts first (or cheapest v most expensive)
Draw up a budget to determine how much cash you can spare for payments
Look for ways to earn extra in order to boost payments to clear debt quicker (the times online offers examples including selling your old mobile phone and renting out your drive!)
Consider the merits of using any savings to reduce debt (only if the relative interest relationship proves positive)
Snowballing – this involves making the minimum payments on your debts but using any extra cash to pay off one of them. Then focus on the second debt, using the same extra cash, plus the money that you were using to make the minimum payment on the first debt.
Consider debt consolidation so that all your debts are contained in one larger personal loan – but look carefully at the economies and longer term implications
Personal debt is now almost the norm – the average UK adult owes around £30,000 (including mortgages). But if debt is a major problem talk to your lender. You may also find a debt charity helpful.