Relationships are difficult enough when there is plenty of money around, so they can be disastrous without money. There are many surveys on this subject: some couples struggle to manage their finances. This may be learnt behaviour from their parents or it may be newly acquired habits that take a toll on the relationship.

If you want your relationship to survive the money woes it is important that you and your partner discuss everything.

Does your partner know how much you are worth? Even financially secure couples may not know their partner’s net worth: the wife may have emergency money stashed away or the husband may have a secret club membership. There are even books out there which encourage women to hide money from their husband, but this should not really be encouraged if you want to be financially open with your partner, not even when spending money on luxury items.

Talk about your salaries, debt, and common financial goals. Setting up a budget is important - as long as you ensure that you both stick to it.  If the other partner doesn’t know you have a lot of debt, find a way to tell him or her. And do it before things start looking financially bleak or bleaker than what they are now.

At what point did you realise you need to contact a professional to help you deal with your debt? It is possible to ignore debts for a short while; however, it is short-sighted to do so. There are many people who are battling with their finances; some might even be thinking of suicide to escape their financial woes.

Did you realise that you need to cut back on early morning espressos and satellite television early on, or was it a late revelation?

Easy credit has been a benefit to us, but it has also created a big problem: we have forgotten what it is like to save up money to buy a big item. Instead, we use credit cards, payday loans and any other form of credit to get what we want – now.

Are you like this, or are you more prudent? We would love to hear from you in the comments section. Let us know what changed your mind about credit. Have you burnt your fingers with a credit card or an unsecured loan? And we would be very interested to hear how long did it took you to find help from a professional organisation.

The financial blogosphere – yes, it is a word – has been buzzing with news and information for the past couple of years. One of the more controversial topics was whether it is possible to stop spending for a month or even an entire year of spending stingily. Most people, however, try the no-spend day strategy. And they blog about it.

Could you do it? Not spend any money for a day. How ambitious a project would it be and would it be too difficult?

It is a worthy idea, though. We do not need most of the overpriced things we buy, never mind how much marketing companies tell us otherwise. Even if you only spend money on lattes, you could be using that money to pay off debt.

Challenge yourself to one day of no spending on anything. Do this once a month or once a week. During that day, reflect on what you would’ve bought and think if helps you in any way. Create a blog or keep an old-fashioned journal for the duration of the experiment. You will be in good company.

There aren’t many of us who would like to add more debt onto our plates. Debt is not exactly a big commodity. No one wants unaffordable amounts of debt.

It is not uncommon for many consumers to have a very low credit score. Many have a credit score of under 620 and this has a debilitating effect on their personal finances. While a 40% pay rise or winning the lottery may help improve one’s finances in the short-term, it will not do much to fund one’s long-term prospects.

Your credit score shows the strength of your purchasing power and improving your score is critical. The interest rate the bank or building society offers you is linked to your credit score, which will determine what type of car you can buy, and what type of house you would be able to live in. If you have a low credit rating you might not get a very advantageous offer from the bank or building society, as a good credit score symbolizes power. This is why it is a smart strategy to spend some time repairing one’s credit rating should that help to purchase the smart SUV or the holiday home in Bali.

Debt consolidation loans have become one of the most popular ways for people to get rid of their personal finance demons. Not all financial institutions are equal so it follows that not all debt service organisations are equal. If you do find the right debt consolidation company, your credit score could be much repaired.

It is a well-known fact that paying one’s debts via a debt consolidation company’s loan should boost your score. Read through our five steps that will give you advice and it will help you decide on whether debt consolidation is for you.

1. Order a copy of your credit report

Review your credit report before you apply for a debt consolidation loan. It is amazing when one realises just how easily a credit score can be stained by false information. There are companies that can give you a complimentary credit report.

2. Calculate your bill to monthly income ratio

This is the second step towards determining if a monthly budget versus debt consolidation would help your situation. Should the total amounts of your bills exceed fifty per cent of your monthly salary, debt consolidation is a sure fire way to raise your credit score.

3. Know which bills you can afford to pay

Credit bureaus receive up-to-date information on consumers’ bills and their payment behavior. Most people make the mistake to believe that by paying only the minimal installment due they will receive a favorable credit score. It’s best to pay off bills entirely.

This is a perfect example of how a debt consolidation firm could help improve a consumer’s rating. Besides paying bills on a timely basis, you should try to pay off as much of the debt as possible. This will help you to raise your credit score and help you to rebuild your credit rating.

4. Pay bills promptly

A fantastic way to get financial and lending institutions to evaluate you in a good light, and to receive credit from them, is to maintain low debt balances on your credit cards. They measure the gap between what credit is available, and how much of that credit you have used. If the gap is wide, the chance of receiving credit at a lower interest rate is significantly higher than otherwise.

Debt consolidation is a quick solution to most of these problems and certain debt consolidation companies could negotiate to have the interest rates waived. This could mean a faster repayment of the bill and a faster strengthening of the consumer’s credit rating.

5. A debt consolidation loan could help you to avoid bankruptcy

Bankruptcy should be your last stop in attempting to repair your tattered financial reputation. It may look like an easy way out, but it will trash any credit score.

Debt consolidation loans could be a rapid way to get out of debt. all debts can be paid off, so a credit score can easily be elevated. Credit worthiness impacts one’s buying power so consolidating debts via a loan is a very smart way to beef up your credit score.

Nobody is very interested in being debt-riddled. There are other, far more enjoyable ways to spend life, and none of these includes receiving phone calls from dodgy debt collectors. More people are moving away from using their credit cards, which could be linked to the pinch we are all feeling. So you’re not the only one who might be looking at ways to beat the vicious debt cycle. Chances are good that you are one of several millions looking for a way out of the insane levels of debt they have built up over the years.

If you have time to do a very quick Googling, type in debt reduction and you will have access to over 16,000,000,000 web pages that deals with this subject. The amount of debt reduction programs available is staggering, rivaled perhaps only by the number of desperate applicants who want to live a little and opt for debt consolidation.

What, then, is the best way to get rid of debt?

Use one, lower-rate credit card. These could be credit cards, store cards or other unsecured loans. We all have them. They have high interest rates and make it easy to pay for things that we really do not need, and cannot afford. They may be a great way to budget; both for everyday items, as well as the so-called big-ticket purchases, but credit should be used with a lot of prudence.

You can ease your stress levels by switching to a single credit card.. You could do well with a lower interest rate – or a zero interest rate – but be careful to check the terms and conditions attached to the new rate.

Do some furious research before you commit to anything. Employ your stealth Googling skills to track down only the very best deals. You’re worth it, right? There are many, many cards out there but you want one that will transfer your balance onto a lower rate. This method relies on you to cut up the old debt-free cards and not to use them again.

Debt consolidation is king

This is not as bad an idea as it may seem. Debt consolidation can give you relief from your creditors. And yourself. You’ll be able to relax again, enjoy the moment for what it is and not fret over how you’ll be able to afford paying rent and have something to eat until it is pay day again. Finding a good debt consolidation loan – one with favourable rates – will depend on whether or not your credit score is stable. A steady income from your employment would also help greatly.

Estate sales are all the rage

What items do you have lurking in your garage? When last did these items see a glorious summer day or a blisteringly cold winter’s day? Many people are tapping into the neglected art of estate sales. There might be a couple of items laying around that you could sell for some extra cash. Do you have jewelery that you have not worn for some years? Or what about that third car that has become something of a white elephant, perhaps?

The money you gain from selling these items could be just what will save you from your debt. Use it to pay off your credit card debt or any other unsecured debt you may have.

Hold down a second job

After a hard day at the office, or the oil rig, or at the restaurant, it is not surprising that most of us would like to go home and unwind a bit. But, this is not the reality for a growing number of UK professionals. According to this article from the BBC there are as many as 25% of us who have a second job.

No one said it was fun but it makes sense: rather grimace and bear it now instead of a near certain bankruptcy at some stage in the future. Use whatever income you have now to pay off any outstanding bills. There is some arguments over this: some say pay off the bills with the highest interest rate; others say you should tackle the smallest debt first. Do what feels good for you, as long as you make an effort with your debt.

Find an escape mechanism

Your level of debt should not get you down. Relax and figure out creative ways to make money. what else can you do to pay off your bills? Perhaps you have a mortgage that will allow you to dip into it, or perhaps you have stocks laying around that you can sell.

Are you struggling to pay your mortgage? Are you battling to finance your dream home? Well, what you may need to consider is taking out an equity loan. But what is an equity loan and how will it help you?

Equity loans were developed to help you pay off your mortgage. Banks will offer lower monthly payments than what you are currently paying on your mortgage.

Home equity loans are cash that is borrowed in order for you to pay off your mortgage. You put up collateral, usually your home, and if the equity loan is not paid, the bank can lay claim to your home. The advantage of this, however, is that you will receive cash to pay off your home and lower your monthly repayments.

For instance, if you are paying 300 GBP a month on your mortgage, your payments will decrease to about 90 GBP when taking out an equity loan. In other words, you are taking out a 30 year term loan and literally paying for the same home twice.

If you are considering refinancing your home, it is a good idea to look around for the best offers and lowest rates. For those set on taking out an equity loan, ask about overpay and underpay loans, where you can get cash in your pocket on your mortgage. It is a good idea to print out contracts from various companies and compare them side by side. Compare your options and this will help you choose the best company for you.

Debt freedom is something everybody wants to achieve, but how to get there is another question altogether. In order to reach financial freedom one has to completely change the way we think about money and the way we manage it. This is not to say you have to give up on life’s little luxuries, but there is a good chance that those very luxuries are the reason you are struggling in the first place. You may have to take a long hard look at what you are spending your money on and what is really important in your life.

You should ask yourself the question, ‘Is having things now more important than having a financially secure future?’ In order to reach your dreams in the future, you have to start planning in the present. How you handle your money in the present determines how much of it you saved for the future. There are some extremely basic and simple changes that you can make in your daily life that will help you obtain a financially secure future

These changes include:

1) Stop living off your credit card. If it is not an emergency or if it cannot be paid off in full the following month, it should not be charged.

2) Keep track of your spending. Once you have determined where exactly your money is going, it will be easier to see where you can cut back. The extra money can be used to pay off credit cards.

3) Pack in your lunch at least 3 days a week. Spending money on lunch everyday is a definite money waster. Eating out is expensive, so rather pack in your lunch and save some money.

4) Instead of going to the movies, rent a movie and spend some time with the family at home.

5) Have a pizza party and invite friends to make and create their own pizzas instead of ordering out.

6) Buy in bulk and freeze dinners. This saves you time and money.

7) Instead of buying expensive gifts and cards on birthdays and anniversaries, why not hand make them? It is much more personal and thoughtful and will save you heaps of cash.

8 ) Try not to shop at boutiques and expensive department stores. Instead, why not browse through thrift shops, discount stores and yard sales. Who knows, you may well find something you like at a much cheaper rate.

10) If possible, pay more than your minimum payments on credit cards on a monthly basis. If the balance of your credit card is high and you only pay the minimum amount due, you will take much longer to pay that balance off, which will add interest as well. By paying just an extra 50 GBP a month towards your balance, you will not only save money on interest, but you will have your debt paid off so much sooner.

Before you can live a debt free life, you have to become debt free. These are just some of the few tips you have to follow in order to obtain financial freedom and security and live a debt free existence.

With just a little effort and thought, you will find many ways of saving money. Look at the things you spend money on and find ways to reduce or even completely eliminate them. With a little willpower and determination, you too will be able to enjoy a debt free and prosperous future.

So many of us sell ourselves short. We believe you need to be born into riches or that you need a sizeable amount of money first before you can make more money. This is a defeatist attitude that could stop people from accomplishing much in life. It is possible to build wealth using a little imagination and a fair amount of perseverance. Sounds simple? Well, it is, but it could become boring, which is why not many people follow through with the formula.

Why do we fail?

It’s actually a simple question, when you stop to consider it. We become lazy and worry more about what’s for supper than whether we should consider a more diverse portfolio. Some of us do not even reach that stage, instead we move money from one credit card to another, just to pay for that supper!

This might work for a short little while, but only until it starts to catch up with you. before you even open your fancy wallet to pay for a ticket to the opera or for that bottle of Johnny Walker, you discover you have maxed out ₤5,000 on your VISA card and another £3,000 on your MasterCard.

Debt consolidation could be a smart move, if you know what you’re doing and you will not be tempted into racking up even more debt now that the original debt has been squashed. The phone calls will stop, which might lull you into a temporary feeling of accomplishment, but remember, there are still bills to be paid. Your monthly payments become lower and this might signal, for some people at least, an opportunity to shop up a storm, which will really just take you back to square one.

What is the solution?

There is no single solution for everyone. Although bankruptcy might seem like an attractive option, think carefully on whether this is a viable option for you?

So what is the million-pound answer? It’s easy, really. Once you have cleared your debt, you should learn to go without spending all your disposable income all at once. Take your paycheck (or as much of it as you can bear) and spend it on assets. Be on the lookout for items that will put money back into your pocket.

And no, it does not matter which type of investments you choose, as long as they all enable you to get out of the debt trap.

Credit card companies do not want you to pay off your credit card debt. Why? Because, the more credit card debt you have, the more interest you have to pay. And interest is what credit card companies need the most. Credit card companies have helped to create the belief that credit card debt is part of our lifestyle.

We have learnt to accept it as part of life and that there is nothing you can do to escape it. A lot of people are spending more money than they make, and this increases their debt at an alarming rate. As your credit card balances increase, so does your minimum monthly payments. Eventually there comes a time when you will not even be able to afford your minimum monthly payments due.

Many people have fallen into the credit card trap. They spend money paying off other debt while using their credit cards to finance their way of life. Having a credit card is very convenient, and it is this convenience that has caused people to abuse it. Why not compare your monthly income to your credit card limit. It’s amazing how much larger your credit card limit is. We use credit cards for just about everything, and to max it out is pretty easy.

So how do you escape the credit card trap and regain control over your finances? Firstly, you should change your attitude towards your credit card debt and money in general. Here are 6 tips on how to break free from the credit card debt cycle.

1) Treat your credit card as if it is a loan. It is after all a loan the bank has given you that you have to pay back. You borrow the money and you have to pay it back. Change your attitude.

2) Always keep track of your balance. Instead of watching your credit card limit, take a look at your monthly earnings. Make sure that your credit card balance does not exceed your monthly earnings and how much you can afford for that month.

3) Keep all your purchase receipts. Costly errors can be cleared up quickly if you have the necessary receipts. It can also help you work out how much you are spending and potentially how much you have to pay the following month. Put your receipts in a safe place where you will see them everyday. As you pile of receipts grow, so too will your credit card debt grow.

4) Pay off your whole balance on time every month. This is the safest way to make sure that you are not in arrears. In this way you do not pay interest and there are no late penalties. And in the long run, the savings will be huge.

It you are struggling with paying off your debt, there are different options that can help. You may want to consolidate credit card debt, or get credit card counseling. They may be able to provide some insight and make it easier to get a grip on your monthly payments.

5) Use your credit cards only in emergencies. Easier said than done, your credit cards should be viewed as emergency cards. Don’t take them shopping or to restaurants, instead use your debit card or cash. If you use cash or your debit card you can spend until your bank account is empty, but at least once its empty you will have nothing more to spend. Amazingly, a lot of people are more comfortable with their credit cards being maxed out than having an empty bank account.

6) Keep you lowest interest rate credit cards and bin the rest. If you don’t have extra credit cards, you won’t find have the urge to use them.

Credit card companies thrive on individuals with high credit balances and high interest rates. But by changing your attitude and realizing that your credit card should not be abused, you too can enjoy a debt-free lifestyle. By using these 6 useful techniques, you may be able to break free from credit card debt.