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Debt affects millions of people today. Bankruptcy's are on the rise and more and more people are struggling to stay afloat.

People who end up having to resort to bankruptcy go through a traumatic procedure the effects of which often last far longer than you would initially expect as the black mark stays on your credit file for years to come and ends up following you around in all sorts of situations.

Often the situation has got so bad that there is no other choice, however, for many, there may still be time to turn things around, if you start now!

47% of credit card holders only pay off the minimum balance on their card each month. This is the worst way to pay them off, guaranteeing that you will still be in debt for many years to come.

It is part of our culture and what seems to be our consumer ethos, to buy now and pay later. We feel that we are owed what we want and should have it without working for it. The problem is that we end up having to work for it anyway and even harder than if we had done it first!

All is not lost though, for most people, if you take action now, you can probably still fix the problem and start living a debt free life!

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. Work out which debts to focus on. One good strategy is to only pay the minimum payments on all of your debts except one which you deem to be the most pressing. (Normally the one with the highest interest but it could also be pressing for other reasons.) You pay as much as you can to that one until it is paid off then you add the payments for that one to the next most pressing debt. This can significantly shorten the amount of time it takes to get out of debt.

Tip 3. Destroy your Credit Cards. While you still have your credit cards, there is always a chance that you will use them. No matter how strong you think you are, there may come a time when you are weak and will use them. If you don't have them then you can't, so get rid of them! Don't forget to cancel them with the issuer when you have paid them off otherwise it will still show on your file as available credit.

Tip 4. Check out your credit report. It's worth making sure that no companies have put black marks on your report. If they have and it's a mistake then you should contact them and get it fixed. If it is not a mistake, you should still contact them, try to pay the debt off and see if they will remove the mark. It is worth it down the line to have a clean credit report.

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!