As mentioned in other areas of this site, the quicker you pay off your debts the less money you spend (throw away) on the interest charged by the lender.

It therefore pays to put as much money towards your debts each month as you can. Every pound counts, so it is important to have a detailed understanding of your monthly financial situation.

In order to put as much as you can towards your debts each month you need to establish your exact income and outgoings each month. A simple, but very useful task.

First, calculate your monthly income. Add up all money you receive each month after tax, including salary, income support, benefits, child benefit and so on.

Second, calculate essential monthly outgoings. Add up all your essential outgoings, excluding your debts. This will include the monthly mortgage/rent, gas, electricity, water rates, council tax, TV license, telephone, car insurance, household insurance, food (excluding snacks!) and so on.

You can now calculate your net disposable income by deducting your essential monthly outgoings from your monthly income. This is the sum of money you have available each month to put towards paying off your debts. If you have multiple debts, make those with the highest interest rates the priority.

If your net disposable income is negative or not enough to pay make the required payments against your debts each month, then visit debt advice for details of organisations who will be able to help you.