Debt troubles are causing misery for more and more people, and personal debt levels are at their highest in history. Most of us want to get started on paying down what we owe, but the job can seem too much to face. There are, however several good techniques you can apply to get started on the route to a debt free future.

Firstly, it’s vital to look at your spending and rein it in wherever you can. There’s not much point in aiming to reduce debt with one hand while the other is engaged in building up new borrowing. Decide to stop using your credit cards except as purely a payment method, always paying back what you’ve spent when your monthly statement comes. Also consider cutting down on on your day-by-day outgoings -  purchasing more inexpensive goods, forgoing the occasional treat or meal out, it all counts.

But this on its own will not do much to pay off your debt – you need a programme to pay it down as soon as possible, and this is where the concept of ’snowballing’ applies. Essentially, you focus your attention on paying down one debt as soon as possible, putting all your spare money into this effort while keeping your other debts at their minimum repayment levels. Once this first debt has been repaid, add the monthly repayments you’d been making on it to the payments on the next debt in the queue. This way, the potency of your money gets greater and greater as it moves on from one debt to the next.

If you’re having severe trouble meeting your repayments, though, the last two methods aren’t going to fend off financial disaster. It’s here that a consolidation loan might be a usable choice. The underlying idea is to take out a new source of credit, and use it to repay all your present debts. The idea is that paying back your new single loan will be less expensive than the combined fees, interest and charges of your earlier debts, and so more of your cash will go towards reducing the amount you owe rather than just standing still paying the interest.

You really need to tread cautiously with this last alternative though, as you’re maybe adding to your debt problems rather than easing them. Ensure you have the self-discipline to pay off your old debts and not bulid them up again before going down this road.

None of these options are simple, and none are without their drawbacks and dangers. However, most of us accept now that our debts are too high and we need to start doing something to reduce them, whatever the short term pain that might be the result. By taking these hints and making use of them, you can make that initial stride towards becoming free from debt.

About the author: Nicholas writes on various aspects of personal debt, from managing credit card debts to stopping repossession.