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More and more people are feeling the effects of the recession and falling into debt. I know, because I’m one of them. And that’s why I’m writing this short guide of three top tips to help you clear your debts.

Of course, the tips aren’t guaranteed to get rid of your debts entirely, but if you put the ideas mentioned into action, you’ll hopefully find that your situation will improve.

Cut back and overpay your debts
Before taking any drastic action against your debts, you should take a look at your finances very closely to see if you can cut back anywhere to save money.

So, have a look at your expenditure and figure out if you are spending your money on things you don’t actually need. Things to look for are takeaways, gym memberships, CDs, DVDs, etc.

If you can cut back on these expenses, the money you are left with could be used to overpay your debts (make more than the required monthly payment). This can help to considerably reduce the time you are in debt, and will help you see ‘the light at the end of the tunnel’.

Talk to your creditors
If you are struggling with your debts, one of the best things you can do is talk to your creditors. You should explain your situation to them and let them know that you are finding it difficult to make the payments you originally agreed to.

They may allow you to take a short payment holiday, or may accept a lower monthly payment (based on what you can afford now) for a longer period of time. Just make sure you get them to explain what effects this will have on your finances.

Seek debt management advice
If you would like professional help with your debts, you could seek debt management advice. This is basically advice on how you can improve your debt management skills and therefore improve your ability to clear your debt in the best way possible.

Debt management advice is available from all sorts of places, and is often offered for free – so you’ve got nothing to lose.