It can feel painful facing up to budgets and bills. The joy of setting up monthly direct debits means you don't have to spend hours pouring over debt management strategies. But sitting down with a calculator and a pen and paper is crucial if you want to maintain successful debt management strategies.

Debt management needn't be scary

If the thought of going through your bills and expenditure with a fine tooth comb sends shivers through you, it needn't be as dull or depressing as you might think. Debt management is all about finding ways to pay off your debt and manage your income effectively so you're building a healthy financial future. And thanks to the internet, debt management can be easy and hassle-free – whether it's finding debt management advice, debt management solutions or using price comparison websites to get the best deals.

Switching suppliers or getting a better interest rate on your credit card or mortgage provider can all impact on your outgoings. But the first thing you need to do for any debt management solution is work out how much money you have coming in, and how much you have going out. This should take into account any benefits you may be legally entitled to – it's estimated around £8bn of benefits go unclaimed every year.

Debt management – Step One

Work out how much money you need to pay for the essential things in life – the roof over your head, food, utility bills and any unsecured debts.

Debt management – Step Two

Identify and prioritise your debts – loans that are unsecured for example could put your house at risk if you miss payments. Others can be negotiated. It's important to concentrate on paying off your most expensive debt first – the longer you have the debt, the more it's going to cost you.

Debt management – Step Three

Don't gloss over facts, bury your head in the sand or think it'll all work out okay when that long lost auntie leaves you a small fortune in her will. Be realistic and deal with the black and white facts. If you can't stick to the budget you need to, or your debts are simply too extreme, you might need expert debt management help such as IVA.

The crucial factor in debt management is step three – take control first, don't wait for debt to take control of you.
Debt Management Solutions with Varden Nuttall

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.