ANY debt adviser will explain there is no one-size fits all way of getting back into the black.
How much debt you can afford to settle and how frequently depends on your wages and outgoings.
It also hinges on your personality, regardless if you are a spender or saver and how easy you discover it to stick to an agenda.
But adopting a tried-and-tested way of tackling money that you owe can help keep you motivated as well as on the right track.
Here are some methods to clear your debts as quickly as possible.
The snowball
Most people owe money to several different companies, by means of unsecured loans or credit cards, or through buy-now-pay-later.
If you can't clear them all at the same time, it is important that you usually prioritise putting any spare cash towards keeping on top of your priority bills and debts first – this is whats called the snowball method.
These include rent or mortgage, so you do not lose your home, council tax and heating bills.
Once those are paid, the snowball method suggests you focus your time and efforts on clearing your less intimidating debts first.
“List all of your debts from smallest to largest, not including any mortgage,” says Rachel Rowley, an economic adviser and financial coach.
“Then focus on paying off the tiniest debt first, while making only minimum monthly payments around the others.”
This technique is not the most affordable, because interest on bigger debts accumulates, however it does keep you motivated.
“The idea is the fact that starting small means you'll find it easier to keep it up and you see progress quicker,” Rowley explains. “It's one of the most popular method as a result”.
The avalanche
This will save you more money in interest than the snowball, however it could be less satisfying, which means you need to dig deep to find the willpower to stick at it.
“You allocate enough money to help make the minimum payment to every debt, then you definitely pay any remaining money towards the debt using the highest interest rate,” explains Rowley.
“Using this method, when the debt using the highest rate of interest is entirely repaid the additional repayment funds go toward the next highest interest-bearing loan.
“You continue this until all the debts are repaid.”
The hybrid
You could, of course, mix in a little bit of both.
Try setting your time period to pay down some of your highest-interest debts, and once they're cleared, approach your debts with the snowball method.
Or, start by building a habit with the snowball and once you are feeling well informed and you're simply on a roll, shift to focusing all of your spare cash on any remaining, expensive debts.
Emotions first
As emotional human beings we all make money decisions depending on how they create us feel, believes Emma Maslin, financial coach and therapist at themoneywhisperer.co.uk
“Many people find themselves in problem debt due to a particular experience or person, divorce is a good example, which can leave them with strong feelings of anger or shame or guilt.”
Therefore, she suggests, paying down any debt which makes you angry or has another strong emotion mounted on it first can help you sleep better at night.
“In my experience like a money coach, uncovering the emotions behind your finances is vital to ensure that any practical steps to stick.”
Negotiation
Many people are afraid to speak about their debt, but “remember that you're not alone within this,” says Dennis Hussey, money adviser at National Debtline.
“Free, independent advice is available from charity-run services such as National Debtline. The earlier you seek free advice, the quicker and simpler your condition will be to solve.”
Don't be afraid to the companies your debt to describe your funds and find out when they will offer you a more manageable method to repay.
Many will suggest breathing space or reduce your interest with negotiation.
“When negotiating with creditors it is important is explaining your circumstances as clearly as possible,” says Hussey.
“Your budget is an important part of this because the more your creditors know, the better placed they will be to cooperate and use you to identify a solution.
“This includes mentioning such things as health problems you may have.”
You can find letter templates for dealing with creditors around the National Debtline website at nationaldebtline.org.
Hussey says for several callers these really make a difference. They gave a script so you don't have to be worried about exercising what to tell creditors, or how you can express it.