Women tend to owe less than men but worry about their debts more. How can you repay yours?

The recession has made us borrow less and pay off more of the money we owe, but the figures around debt are still pretty frightening. According to the debt charity Credit Action, each household that owes money owes an average of £21,200 on credit cards, overdrafts and personal loans. Although research shows that women owe less than men, we tend to owe money on credit and store cards - which can charge high rates of interest - which means we end up paying more. We also tend to worry about our debts more than men do.

First steps in paying off debt
If you’re good at sticking to a plan and your debt is manageable, you can probably deal with it on your own. Read my article on paying off your debts double quick before you start.

• It includes tips on how to make sure every pound you pay works as hard as possible (for example, the most efficient way of paying off your debts is to pay as much to the debt charging the highest rate of interest first).

But if you’re worried about your debts and don’t know where to start, contact a debt advice charity for help:

• CCCS: If you don’t want to talk to someone, you can use its online anonymous debt counselling service called debt remedy. If you prefer, you can call the helpline (0800 1381111), which is open from Monday to Friday 8am – 8pm.

• National Debtline has lots of useful factsheets on its website and also offers a confidential telephone-based advice service (0808 808 4000).

• Citizens Advice offers help over the phone, face-to-face and some bureaux provide an email service as well.

SAVVY TIP: Debt advice charities will sometimes offer to deal with the companies you owe money to on your behalf, which can take the pressure off if you’re getting lots of phone calls and letters you can’t face dealing with.

Becoming debt free
Don’t think that your debt problem is so bad that you’ll never be able to deal with it. It may be tough to get back on track, but it will be worth it.

• Draw up a list of everything you owe, who you owe the money to, how much you’re paying and how long until you’ve paid it off.

SAVVY TIP: This may be the first time you’ve done this exercise and the result may be a bit of a shock. If that’s the case, don’t be put off; at least you have a starting point and with a bit of planning, you should be able to pay off your debts more quickly.

• Work out a budget. By doing this you’ll know what you need to spend and what you have left over to pay off your debts. Use SavvyWoman’s budget calculator to help you work out exactly where your money goes each month.

SAVVY TIP: If you can increase the amount that goes to pay off your debts, great. If you’ve worked out that you’re spending more than you earn and you can’t see a way to cut back, you may need to get in touch with one of the debt advice charities I mentioned above.

• Keep a spending diary. This isn’t the same as a budget. It’s just a record of what you spend and when. It’s a good way of working out where you can cut back if it’s not immediately obvious from your budget.

SAVVY TIP: Write out what you spend or use the Moneybasics spendometer, which you can download to your mobile phone.

Focusing on your goals
Don’t concentrate on the fact you have to deny yourself and cut back so you can pay off your debts, instead focus on how you’ll feel when you’re debt free.

• Write down reminders of when you’ll have paid off your debts. If you’re able to pay off your debts more quickly, allow yourself a treat. It doesn’t have to involve spending money, it can be a long soak in the bath or a walk in the local park – but it should be something you do for you.

• Consider teaming up with a ‘debt buddy’.. Ask a friend if they’ll encourage you and help keep you on track so you reach your debt repayment milestones.

SAVVY TIP: You should definitely tell your partner about your debts; not least because your debt problems could affect them (if you have a bad credit rating and you have joint loans or mortgages). If you think your partner is the best person to encourage you to stay on track – that’s great, but you might find it useful to sign up a friend instead or as well.

Related articles:

How to draw up a budget

What to do if you're struggling

Store card basics

SAVVY HELP: Frances Walker of the debt charity CCCS is one of SavvyWoman's panel of experts. Why not ask Frances a question about debt by clicking here? The answer will be displayed on the website but your surname will never be used.