The first step to solving your debt problem is to face up to it. There are a staggering number of people who refuse to admit the extent of their debt problem to themselves, let alone to their friends and family. The act of burying your head in the sand is one thing though; what about those that just don’t know how close they are to the brink of a bad debt breakdown? That’s why the team at Debtsolver have drawn up this list of the top ten early warning signs that you are headed for financial trouble.

1. For starters, are you able to write down how much you owe and who you owe it to? Well, if you can’t, you’d be better to find out and make sure you keep that figure in mind. Basically, if you know that you’re in debt but can’t really keep track of how much, you’re either heading for debt trouble or you’re already there. Maintaining control of your finances is key to avoiding debt.
2. Is your monthly budget working? Wait, you don’t have one? Again, this about control over your finances. You need a budget to make sure that you’re not spending more than you earn. If you don’t know whether or not you are spending more than you earn, you could be heading for debt problems.
3. Only making the minimum repayment on your credit card? You may be keeping your head above water right now but only paying the minimum is a risky business. It does little to tackle the actual debt and really just knocks off the interest. That means you’ll be working on the debt for a long time.
4. For anyone who regularly uses their credit card to pay for those everyday items, including things like filling up the car or the weekly food shop, the habit could point to overspending and financial mismanagement of the sort that leads to serious debt problems.
5. Likewise, if you’re using your credit card to make repayments on other debts you could be caught up in an ever-worsening spiral of bad debt that it’s hard to escape.
6. Has making the odd late payment become a bit of a habit? How about charges for going over your credit card or overdraft limit? These charges can mount up quickly and will make a difficult debt situation even worse.
7. Any rainy day savings left? Your financial situation can change without warning and it helps to have a cash cushion to fall back on. If your employment circumstances change, you can quickly find yourself facing severe debt problems if you don’t give yourself a debt safety net.
8. You’ll find it very difficult to pay off your outstanding debt if your total debt, excluding your mortgage, exceeds your yearly income. You should be considering debt solutions now.
9. If thinking about your finances is difficult and talking to anyone about them even harder, the odds are that things aren’t going well for you financially. Debt denial is extremely dangerous though, so talk to a specialist debt advisor and solve the problem.
10. If the stress of mounting debt is affecting your health or your relationships with those close to you, you must do something now. The sooner you tackle the problem of mounting debt, the easier it is to solve. That doesn’t mean that it’s gone too far though. There is a debt solution to suit everyone.

For those of us who strive to keep up with the Jones’, recent figures suggest that we could be about to enter an era of heightened repossession risk. The warning comes as in the better-off parts of the UK, Credit Expert, the online credit monitoring service, has shown that individuals are under significant pressure to keep up with the extravagant purchases of their peers. Sadly, this is a damaging cycle that stretches our finances to breaking point. Debtsolver know the effects of this irresponsible spending can be severe and long-lasting.

The statistics, released in the Scotland on Sunday, have shown that about £45billion is being spent on expensive cars, designer fashions and big ticket appliances each year, with the Scots the most image conscious in the UK. This trend translates to a marked increase in financial pressure among Britain’s middle classes though, brought about by increased borrowing. So, even in times of austerity, we seem to find it difficult to maintain a responsible attitude to spending. The desire to better our peers and maintain the irresponsible spending habits that became ingrained pre-credit crunch is putting homes at risk in some of the most affluent areas in the UK.

The number of repossessions looks likely to increase before the end of the year and the trend will continue if we don’t do more to tackle reckless spending habits. We all know the theoretical perils associated with ‘keeping up with the Joneses’ but it’s important to understand that the threat of severe debt problems, bankruptcy and repossession is real and in some cases, imminent. Put simply, there are a lot of Brits living beyond their means and if their behaviour doesn’t change, they’re in serious financial trouble.

Peer pressure is something that we commonly associate with teenagers trying to fit in but it seems that roughly a fifth of us admit to irresponsible spending in an effort to compete with our friends and neighbours. A quarter of us will dip into our savings to boost our image in front of our friends and half of us often feel compelled to make gestures like buying expensive rounds if drinks.

Of course, the epitome of overspending to impress will always be when we’re out on a date but there are other situations when common sense takes a back seat to our ego. Parting gifts for colleagues, friends’ birthday presents and the latest designer fashions are just some of the areas where we are likely to spend far more than we are actually comfortable spending – but we do it anyway.

There has been much written about a sea-change in the stigma surrounding our spending habits. On one hand, we have this bleak picture being painted of a nation of image conscious, reckless over-spenders; on the other, being thrifty is cool, with clever insights into the best ways to reuse and recycle being regarded as the most valuable social currency. This is certainly better for your financial well-being and could have a significant impact on your health too; the stress of debt and compulsion to conceal our financial troubles can put us under a lot of strain.

During a recession, it’s not just the economy that’s depressed. The stress of debt problems can have a significant effect on your health, both mental and physical. Whether you have lost your job or someone close to you has been laid-off; you find that you’re unable to afford life’s little luxuries for yourself or your family; scraping the money together to pay for those mundane, everyday expenses has become an unending source of stress and the constant financial doom and gloom being forecast by the media has started to get the better of you.

Naturally, in such difficult times, you can find yourself feeling pretty fed up. However, without making light of a situation that is unquestionably painful for a lot of people, you need to keep your morale up if you are going to maintain the motivation to tackle the debt problem. Here’s how to stay upbeat in a financial downturn.

1. Come to terms with your financial situation quickly. Accepting the situation that you’re in needn’t mean complacency though. You can’t bury your head in the sand and pretend it’s not happening; neither should you try to hide the problem from those close to you. Keeping a secret like this can be extremely stressful and have a marked impact on your health. Don’t delude yourself into being blindly positive though. It doesn’t work and the pretence will wear you down. The real respite comes from knowing that you’re actually on the case.
2. Don’t beat yourself up about your financial situation. The majority of debt problems are not the result of irresponsible spending but rather a troubled economy, so don’t lay the blame solely at your own feet. Try to turn the stress of the situation to your advantage and use it to fuel your determination to safeguard your financial future. Be confident in your ability; steel yourself for a hard-fought battle to keep providing for your family.
3. The downturn will not last forever. Although it might seem like a long way off, there is light at the end of the tunnel and you just have to stay afloat until then. After all, there was life before the recession and there will be life after the recession. That doesn’t mean that you should lose focus on the present; be prepared to make sacrifices and tough choices now that will get you and those you care about through hard times.
4. Don’t isolate yourself from a potentially supportive community. In a national downturn, the odds are that you’re not the only one who’s been affected. So, band together and help each other out. It can do wonders for morale to talk to people in a similar situation. Getting a caring, sharing community vibe going can also save you money. If you band together, you can share resources; maybe not necessarily in terms of money but do consider helping out with a bit of DIY, childcare or carpooling.
5. Be proactive in actually making your situation better too. Get debt help, bring your budget back under control and start to manage your financial recovery. If you’ve lost your job, don’t wallow, get out there and look for another one. Look at your food budget and cut back on those unhealthy options. Keep fit and active if you find yourself with extra time on your hands. Remember the days when keeping fit didn’t demand a gym membership? Stay sharp, stay healthy and stay positive.

1. Do you always go back to the dealer to have your car serviced? Smaller, independent garages will do the work a lot cheaper. It’s always a good idea to choose somewhere on the basis of a referral though. A good, reliable garage that has experience with your car is a great way to beat high dealer servicing costs but they can be hard to find.
2. When you do take your car in for its service, whether to your dealer or to an independent, don’t let them talk you into buying things that you don’t need. New wiper blades, air filters or high-performance, synthetic motor oil are all expensive extras that can, if needed, be bought cheaper elsewhere.
3. When it does come to wiper blades and that kind of thing, buy them and fit them yourself. It’s an easy job, takes no time at all and is the sort of added extra that you’ll often pay through the nose for if you leave it up to the garage to stick them on.
4. Although we’ve warned you about the inflated cost of dealer servicing, beware the false economy of dodgy garages. As we’ve said, the best way to find one is through a recommendation. When you check it out, look for a busy but well-kept garage and a mechanic that is happy to discuss the job and answer your questions. Get an estimate and make sure you sign off on costs before any work goes ahead.
5. If you find yourself replacing tires suspiciously often, or they’re wearing down unevenly, you could just be treating a symptom, rather than the real problem. Chances are you’re wasting money on tyres when you need to getting your tracking fixed, a wheel balancing, alignment or even suspension
6. Putting off problems with your car because you’re trying to save money will often just make for bigger bills later. For example, that squeak from your brakes might just be a source of aggravation right now but rather than just buying new pads, you could do damage to your disks. Of course, there is always the safety concern with your brakes too. Staying on top of thing like that will help to ensure that you’re not wasting money on costs that could be averted.
7. Keeping a record of the repairs that have been carried out on your car can help you monitor problems, like replacing tyres and brake pads too often, helping you to decide if something’s seriously wrong. Keeping the receipts can help you if the repairs go wrong too.
8. When it comes to insurance, liability is not an area you want to cut back. However, if you’ve got an old car that’s not worth very much, comprehensive insurance can effectively be a waste of money. Take the cost of a year’s insurance premium, add the excess that you’d be liable for and take it away from the value of your car. When you see the bottom line, is it worthwhile?
9. In terms of general upkeep of your car, tyres at the wrong pressure can be a huge waste of money. Improperly inflated tyres can cost you more in petrol, wear out more quickly and put you at risk of an accident.
10. Taking your car to the car wash can be a relatively expensive proposition these days. Rather than allow your dirty car to show you up though, why not wash it yourself? Take some pride in your pride and joy and get out there with the sponge and chamois. The brushes at the carwash can be quite abrasive too, so hand washing will keep the paintwork looking its best.

The summer holidays are just around the corner and as much as we look forward to those few, fleeting days of home-grown British sunshine, it’s more likely that we’re considering the possibility of jetting off to warmer climes. Well, in the wake of recession, ongoing financial woes and unemployment, you’d be forgiven for thinking that we’re all tightening our belts and looking closer to home for our summer holiday.

We’re not though. The results of a recent poll conducted by the travel specialists at Lonely Planet seem to suggest that British holidaymakers will readily forego their frugal ways when it comes to funding their summer sojourn.  Although a lot of the blame for the recession can be attributed to a general ‘buy now, pay later’ attitude to our finances, the media coverage that was devoted to the credit crunch has instilled a strong sense of credit caution. When it comes to holidays, it seems we’re ready to take a break a break from responsible spending.

About a quarter of Brits said that they would sell some of their possessions in order to fund a holiday; roughly one in ten would actually go to the length of taking out a loan or extending their overdraft to afford it. Perhaps even more telling, the survey suggested that 35% of Brits travelling abroad will be quite comfortable with putting it on their credit card and a measly 1% would let not being able to afford it put them off.

The other side of the argument is of course, that almost two thirds of those asked would not take on extra debt to pay for their holiday. Rather than buy now and pay later, they held true to the far more sensible practice of actually saving up for something before buying it. Naturally, some of those would have been willing to use a proportion of their savings on a holiday but that’s at least their money. The potential problems that they face are inherently less risky than those faced by holidaymakers who go into the red to get away.

We recommend that you have a contingency plan for any unexpected change in your financial circumstances. If you use a credit card to pay for your holiday, there’s a strong chance that it’s going to cost you more in the long run. There is also the ever present risk of unemployment in this volatile financial environment. Returning from your holiday to find that you have lost your job will make it extremely difficult to meet these repayments. So, start your summer holiday preparations far in advance by saving up for it.