Here are 5 steps which would make a good new years resolution to becoming debt free.

1. If you have more than 1 credit card, compare the rates and terms. Work out which one costs you the most money, and then transfer the debt of the higher ones to a low interest rate loan taking advantage of the current low interest rates.

2. Take further advantage of low interest rates and re-negotiate your mortgage.

3. Using credit card and bank statements, list the contents into 3 lists.

Essential Needs: e.g. rent, mortgage, heat, essential food

Complete luxuries: e.g. vacations, money wasters

Items that fall in the middle such as clothes, less essential, more luxurious foods

Then make a list of all the things you are not going to buy any more

4. Look into tips for reducing your power bills

http://www.xomba.com/power_strip_save_money_while_you_sleep

http://www.xomba.com/15_lazy_and_low_effort_ways_reduce_your_electricity_bill_instantly

5. Find a non-biased approved debt counselor to go through your debts and bills and advice you on how best to reduce your outgoings most efficiently and to organize how you should setup your repayments.

Wishing everyone a debt-free new year