Have you been refused credit? Time to get out of debt:

No matter how much you're in the red; it's never too late to take control of your finances. Follow our seven step plan to getting back into the black:

Step One:
Establish your financial footing. Before you can begin tackling debt you'll need to know exactly where you stand. If your monthly debt repayments add up to twenty percent of your income then you need to take action. If you're still in any doubt take the Consumer Credit Counselling Service's online DEBTCHECK

Step Two:
Set a Budget. Once you've calculated your monthly incomings and outgoings; look for areas where you can make savings. Think about every purchase you make and ask yourself if you really need it. Use savings to pay back any debt early; remember that the sooner you pay off your debt; the less it will cost you in the long run.

Step Three:
Stick to your budget. Unfortunately, when it comes to debt; there's no such thing as a quick fix. You may be in it for the long-haul, but it will be well worth it in the end. Many people find it helpful to withdraw their budget in cash at the beginning of the week and then hand their plastic over to a trusted friend. With temptation out of the way; it's much easier to stick to a budget.

Step Four:
Take a fresh look at your finances. It's amazing how much money can be saved with just a little legwork:

Get a better mortgage rate. Start with the financial pages of the Sunday supplements or speak to an Independent Financial Advisor. Remember to include all charges in your calculations.

Get cheaper insurance. There are some great savings to be had in cyberspace on everything from vehicle to household cover.

Change credit cards. Shop around for the best rate and do yourself a favour by cutting up any (notoriously expensive) store cards at the same time. Look for a card with a zero percent/ six month introductory rate and use this time to clear any outstanding balance.
Don't forget your household utility suppliers. Real savings can be made by changing gas, electricity and water providers. If you aren't sure where to begin; logon to www.uswitch.co.uk. Cut mobile phone bills by changing to pay-as-you-go and setting a monthly limit.

Step Five:
Switch Banks: Just because you are saddled with debt doesn't mean that you're stuck with the same bank. If you bank with one of the big high street names; the chances are that you aren't getting the best rates on your overdraft. A number of online banks have introductory 12 month interest-free overdraft offers.

Step Six:
Switch to direct debit. Most utility suppliers offer discounts to customers who pay by direct debit. As well as money you'll also save time and hassle. Just call your bank or fill in the form on the bottom of last month's bill.

Step Seven:
Boost your income: Approach your boss and see if there are any opportunities for working overtime or scour the small ads for weekend or evening work. If you have a spare furnished room; consider letting it out (with the government's ‘Rent a Room' scheme you can receive up to £4,250 a year tax-free). Contact the Citizen's Advice Bureau to see if you are eligible for any state benefits (such as tax credits).

And Finally: Don't be embarrassed about debt and don't burry your head in the sand. There are plenty of debt counselling services ready and willing to help, including; The Citizen's Advice Bureau, National Debtline (Tel: 0808 808 4000) and The Consumer Credit Counselling Service (Tel: 0800 138 1111).