First on the list to achieving a debt free lifestyle should be to create a strict household budget for your family or circumstances. Make it realistic though as you need to stick to it.
List all your monthly outgoings so that you know exactly what needs to be paid, who to and when. This can be done using a spreadsheet on a computer, taking information from a book or just simply writing it down.
It may seem like a daunting task that you don't want to begin but just a simple list is a start to becoming debt free.
There is free help available to start this task if you don't want to attempt it by yourself. Look at services that give free debt reduction advice such as your local citizen advice bureau.
Once you have a list of your monthly outgoings you can start to see if you can make any savings by methodically looking down the list at each bill separately.
You may find that you are paying out more than you need to for your utility bills. The easiest way to find out is by comparing companies online through our comparison website to find the cheapest deal.
Looking at becoming more energy conscious in your home can also help reduce those bills and combined with finding the cheapest deal will help capitalize on your savings.
Small tips such as switching off lights when a room is empty and only putting the water you need into the kettle to boil can all help to reduce bills and therefore debt.
Next, turn your attention to any credit cards, store cards and loans that you may have. Look at whether you are getting the best rates for each of these.
You may want to consider a balance transfer onto a zero percent credit card to ensure you are not paying added interest on your existing debt. Cut up old cards so that you are not tempted to keep using them and concentrate on paying off existing debt.
If you are unable to meet all your payments each month and they are spread across many cards and loans, look at consolidating debt into one easy payment.
Remember, the sooner you start to address the debt the sooner you won't have any and can enjoy financial freedom.
Article provided by MoneySupermarket, go online and see what financial products can help you to sort your finances in 2012.