More and more people everyday are finding out how easy it can be to slip into debt problems. Bankruptcies and IVA's are on the increase and the debt problem is getting worse.

For those that don't manage to avoid bankruptcy, the effects can stay with them for many years. The stigma that was once attached to it has lessened but it can and does still cause many difficulties for its victims. For example, It can cause you trouble when you apply for a job because employers can now credit check you.

Many people who have become trapped with large debts will find that bankruptcy is their only option and if that is the case, you should face it head on. For most though, options may still exist. If this is the case for you, it is important that you take action as soon as possible.

One of the big causes of the debt problem for many people is credit cards. Excessive spending on credit cards along with only paying the minimum balance each month is a sure fire way to spiral into deeper and deeper debt.

It seems to be almost the norm in our culture to think that we are owed something and that we should be able to get the things that we want as soon as we want it. The banks and credit card companies have spent allot of money trying to convince us of this. That way, they can keep us owing them money and working for them forever!

It is time to take a stand and make a difference in your life and to help you do that, here are the 7 top tips to help you become debt free.

Tip 1. Put it all down on paper. Make a list off all of your debts. It sounds like an easy task and it is. You need to write down your creditors names, total amounts outstanding and monthly payments. Be prepared as it can be a bit scary especially if you haven't listed them all before. But don't worry; you'll get on top of it.

Tip 2. Prioritize your debts. Which are the most pressing debts? If you stand to lose something (like your house) by not paying then that is the most important debt. Next, if you have already had trouble and have come to an arrangement with a creditor, you should try to stick to it. Next, list your debts by interest rate, highest to lowest.

Tip 3. Cut up those credit cards! Don't just put your credit cards away somewhere and defiantly not in your wallet. Cut them up so that you won't be tempted to use them. When you pay each one off, contact the company and cancel the account. Don't fall back into the same trap!

Tip 4. Examine your credit report. Your credit report shows you your payment history. You can get a copy cheaply from many places online. You should check it for any errors that could harm your credit rating and write to the companies concerned to have them corrected. This will ensure that your credit problems do not cause you trouble into the future.

Tip 5. Write down and stick to a budget. When you stick to a budget, it fills you with confidence that you can make a positive change and break free of your debt trouble. It also makes it much more likely that you will because you know that you are working everyday towards improving your situation.

Tip 6. Never swap unsecured debt for secured debt. Companies will throw offers at you once they learn that you are in debt trouble and you are a home owner, but they will reposes your home at the first opportunity if you start missing payments so don't do this unless you have no other option and always seek impartial advice first.

Tip 7. Get help. There are many sources of free help out there for people in your situation. They can advise you on your rights and the options open to you. Also, it helps to talk to someone impartial and to know that you are not alone and that there is always a way out!