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Don’t wait till you’re 50 to tackle your debts!

4. Set yourself a goal
There is no point taking stock of your finances without having a medium- or long-term goal. Decide where you want to be, realistically, in a year’s time and 10 years’ time, and work out how you’re going to get there.

Your targets could be as minor as paying off one of your credit cards or as big as saving for a house or a new car. Review your plan regularly to see how you’re doing.

5. Don’t wait to get help
If your circumstances change or you’re struggling to manage your loans, get help as soon as possible from your lenders – they’ll be able to advise you.

Increasing numbers of people are going bankrupt or taking out an Individual Voluntary Arrangement (IVA) to escape debt – but these options should be a last resort.

Both options stay on your credit report for many years and can mean you are refused credit or charged very high interest.

6. Get to know your credit report
Your credit report is a personal history of the credit you have taken out, such as credit cards, loans and mortgages, and your repayment record, including any court judgments against you.

Lenders use it to check that you make regular repayments and aren’t overstretched, so it pays to make sure it’s in good shape.

Next: Ensure you’re in the clear with your free credit report >>