With the credit crunch in full swing, most of us have been thinking about sorting out our debts. Well, here are a few ways you might be able to get your debts in order.

Deciding to ignore your debt and only make the minimum monthly repayments is not going to sort out the problem. In order to clear your debt you need to get proactive and that means taking control of your finances and making a few sacrifices.

Making only the minimum repayments on your borrowings can lead you down a long windy road to more debt. The chances of your debt spiralling out of control is very great and clearing it will become more and more difficult.

If your debt is beginning to become unbearable than you might want to consider merging all of your debt into a consolidation loan. Setting up a direct debit with payments going straight from your account to your credit company will also ensure that you don’t miss any payments and thus face paying back large late repayment fees.

Even if your borrowing is under control and you are having no trouble meeting monthly repayments you might still be able to cut the cost of your repayments. First of all it is worth checking to see if you can transfer your existing debt onto a card with a low rate of interest for the first six months.

Look at balance transfer fees and see if you can find a better deal for yourself than the one you currently have.

Whilst it is always a good idea to set up a saving scheme, it is wisest to use any spare cash to clear debts. Any interest gained in the bank will be more than wiped out by the interest on credit cards and personal loans.