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Any borrower who is facing financial difficulties must always be thinking how they can reduce their debt.

It is tough, but there are several things you can do to try and keep things under control. And this is crucial – control of finances can only make them more manageable, easier to pay off and less intimidating all round.

Firstly, set your monthly budget and stick to it. Make sure you can realistically afford what you spend, and always have your limits on your mind.

Don’t go too mad on payday. The best way to handle debt is to handle income, and that means a fair spread of spending through four weeks. Struggling at the end of the month will just lead to more debt.

Also, if you do go shopping, try to use cash, it will highlight just how much you’re spending. Plastic is the biggest enemy to those trying to handle debt.

Check your credit report all the time – your credit score is essential in helping you get more finance and also crucial in understanding how indebted you actually are. These reports can be found online quickly and easily.

Finally, do your homework. Use price comparison sites to make sure you’re getting the best deals out there for everything from car loans to credit cards and savings accounts. And then once you get your information, get some professional advice to see what deals are really the best for you.

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