Debt is like quicksand. Someone can be happily walking along and the next thing they know they're up to their elbows in gunk. The more they struggle, the more they get sucked in. In this situation Bear Grylls keeps a cool head, thinks out a plan of methodical action and is soon standing on terra firma. It is possible to use the same approach when escaping from the quagmire that is personal debt.

Sitting down and formulating that plan is the key. It is best to write down the points since the very act of writing something down suggests a commitment to change. But what would this plan look like? What would be the main points? Here are a few pointers:

&bull Holidays: taking holidays at off peak times can save a lot of money. Flexibility is the key here. Last minute deals are good too.
&bull Benefits: ensure that all benefits and support that you are entitled to is, in fact, being claimed. The Citizens Advice Bureau can help here.
&bull Utilities: with the cost of electricity so high (and set to climb still higher yet) conserving energy is not just a matter of ideological preference but one of economic necessity. So, lights off in empty rooms.
&bull Economise: look at monthly expenditure and decide if savings can be made. For example bringing sandwiches everyday to work can easily save £50 a month. Direct debits that many have include gym membership fees, satellite TV subscriptions, mobile phone charges. Are all these really offering value for money or are there better deals available? And as for that new book you were keen to read, is it really best to buy it when a copy can be ordered from the library for less than a pound?

Debt consolidation loans are a further option for those looking to devise a new debt management strategy. This can certainly simplify the picture when there are numerous creditors but all options need to be carefully considered in order to find the best deal.

22.4.2008