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If you are a homeowner with an adverse credit history, very little or no equity in your home and debts beginning to take their toll – what do you do?

It's a good question because frankly, what do you do? In the past banks were more than happy to lend to borrowers like yourself, but now there is very little chance you will find a lender who can offer you a remortgage or a secured loan. In this new world you have to be prime to be a borrower.

Well, the first thing you do is to get a good idea of your income and your outgoings. Assess what is important and what isn't and then cut out the extras. This will save you some money and will give you a good basis to begin making your finances work into the black, not further into the red.

You should also make sure you are paying as little as you can. Talk to your credit card providers, your personal loan lender or even your local council and see where you can make reductions – maybe you can get a better unsecured rate, maybe you can get some leeway on your council tax. You may even be able to downgrade phone, TV and Internet packages to save you extra.

Then check your credit score. This will tell you what type of borrower you are, officially. It may show where you have weaknesses, it may show you where you have been losing money. But one thing it will definitely show you is what a lender sees: your credit score is you, financially.

Then the next step is to get some advice. It doesn't cost too much and you need to get an expert's opinion about your finances if you have any chance of moving forward. They will be able to assess how 'subprime' you are and whether you have a chance of getting finance.

And if you can't? Well don't lose your adviser's business card. Because with some saving, some prudent planning and some time you will almost certainly be in a better place, one that will allow you to get some financial backing and get on with getting out of sub prime.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.