The average household debt has now reached £55,814; this figure has risen by £11,000 since August 2011.
The Credit Action group found that, on average, a property is repossessed every 14 minutes and UK adults owe an average of £29,536.
Whilst it may seem that older generations acquire more debt due to housing and family responsibilities, the Consumer Credit Counselling Service (CCCS) found that the majority of young people have an average of £2,254 in unsecured debt.
If youíre struggling to manage your debt, here are some top tips;
1.Seek professional Advice
If you are struggling to manage your finances, you should seek advice from an organisation which specialises in helping people manage their debt. It can often feel overwhelming and difficult, but you are not alone in your money troubles. If you cannot discuss your problems with a friend or family member, contact a debt charity such as the National Debtline or the National Foundation for Credit Counselling.
2. Set a budget
Sticking to a budget can be difficult when you may be under certain restrictions. Depending on how serious your debt is, you should GRADUALLY introduce a budget into your life so that it does not have such a huge impact on your lifestyle straight away. There are also many ways you can reduce your spending by changing everyday habits such as non-brand food shopping and taking your own lunch into work.
3. Reduce your borrowing
One of the most fundamental things to consider when managing your debts is to reduce your borrowing. You should never borrow to get out of debt, this will only result in you having mounting debt. Shop around for lower rates when looking for a loan or credit card. By going for the lowest interest you can transfer your debts to new accounts for less.
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Check what youíre entitled to and any additional benefits including reduced council tax. You could be entitled to a range of government pay offs that could help ease your financial situation.
5. Prioritise payments
You can easily avoid high fees and charges by ensuring that you do not miss repayments on debt and bills. By paying the most pressing debts first, and then staggering the payment debts thereafter, you could reduce the amount of interest you accumulate from credit cards and other fees that you could get.