It is very easy to get lured into taking out new credit cards, store cards, credit agreements etc. and before you know it you have a number of small debts which add up to quite a sum. Often you take them out with the best intentions - making full repayment each month to avoid interest charges.

But it's not always easy to keep up the good work and you slip into making minimum repayments and the debts and monthly interest start to add up. The problem with this type of credit is that it usually attracts the highest interest rates, meaning that charges can quickly escalate.

If you have a number of small, high interest rate debts you could consider an unsecured debt consolidation loan. This is likely to be at a much lower interest rate and, if you take it out over a few years (say 5 or more) the monthly repayment should be much lower than servicing your existing debt.

Make sure you cancel and cut up all of your non-essential cards once they have been paid off to avoid future temptation. You could take a little extra cash with your consolidation loan which you can spend as you please.

For people with bigger debt problems there are other options which may be more appropriate such as an IVA or debt management. Our dedicated debt website, IVA Debt Problem, can help you with free debt advice and guide you down the right path.

With the recent election in the UK delivering a hung parliament, and now a right-left Con-Lib coalition, there is a lot of uncertainty about the direction in which the country is headed. The forthcoming emergency budget is unlikely to deliver much good news for anyone with likely tax rises and spending cuts.

On an indivdual level there is little you can do about government financial policy. However, you do have control over your own finances and now would be a good time to review them and get yourself on a good footing so that you can better cope with any financial bad news.

It is very likely that you know how much you earn each month, but do you know how much you spend and where the money is being spent? A good start to a financial review is to get out your past few months bank statements and analyze the transactions.

One-off fixed monthly transactions, such as a mortgage or rent, are easy to spot and keep track of. Other spending areas, such as grocery shopping, which occur several times a month and tend to be different amounts each time, might surprise you when you add up your total spend.

Breakdown each statement for the last 3 months (or 6 months if you have the time) and see where your money is going. Are there any obvious areas in which you could cut back and start saving money?

Think about whether you can impose (and stick to) a monthly budget for items such as shopping. If your monthly spend for shopping is working out at £325 per month, can you work within a budget of £300? Even if you cannot always stay within your monthly budget if you have a figure in mind to aim for it is likely you will start spending less.

You might even find transactions you didn't realise you were paying! Many people who do not check their statements each month don't spot rogue payments and can end up paying them for months.

Once you know exactly how much you are earning and spending hopefully the former exceeds the latter. If not you are likely to be on the slipper slope towards debt problems and all of the misery this can entail. If this is the case seek professional debt help as soon as possible before things get too bad.

If both figures are similar then cutting back a little on your spending will give you a little breathing space, or an opportunity to save/invest for the future.

If you find that you are paying out for lots of high interest borrowing, such as on credit cards, you can either change your card for a low interest one (or low interest balance transfer deal) or think about a debt consolidation loan.

Taking control of your finances will give you peace of mind and make planning for your future easier and more affordable.

The government has announced new legislation aimed at tackling credit card debt. There are several measures which will be welcomed by consumers:

1. An end to adverse order of payments
2. More control over credit limits for individuals
3. Easier comparison of credit card deals
4. Clearer information on increased interest rates/credit limits

The "adverse order of payments" is the way credit card companies apply repayments to the portion of the debt attracting the lowest interest rate in order to maximise the interest they receive from the higher interest rates. For instance, if you transfer a balance to a new card with a 0% interest rate and then start shopping with an interest rate of 10.9% on every purchase if you make the minimum payment each month it will be used to pay off the 0% debt first with interest continuing at 10.9% on your purchases. The new legislation will require payments to be apportioned to the highest rate of interest first, thus minimising the amount of interest accruing each month.

Credit card companies will no longer be able to increase credit limits without prior customer approval. Customers will have the right to reject credit limit increases and reduce their credit limits when they want. They will also have clearer information provided regarding increases in interest rates, and annual statements allowing them to compare credit cards more easily.

The legislation has been agreed with credit card companies and will likely be fully implemented by the end of 2010. In the meantime if you are struggling with credit card debt, or any type of debt, you need to tackle it sooner rather than later.

IVA Debt Problem can guide you through all of your options and help you find the best way forward. Their debt solutions offer you the most effective ways of reducing your debts and getting back on your feet.

Information is available on debt management, debt consolidation, IVAs and more. There is a handy debt helpline to call if you would like to discuss your options, and an easy to complete online enquiry form.

IMPORTANT: If you are struggling with debt don't bury your head in the sand and hope it will go away or sort itself out. It won't and avoiding the subject will only lead to more debt and more problems. Get debt help and advice as soon as you can.