However, I appreciate that there are a number of people out there that may not want to tarnish there credit rating by defaulting on their debts and subsequently settling a year or so down the line.

There are ways of writing off your debts that don’t involve a full and final settlement, for instance you may have a case for your agreement being unenforceable if the agreement was made a number of years ago. There are a number of companies out there that claim to specialise in UCA’s – unenforcable credit agreements – if you chose to use one, make sure they are on a “no win, no fee” deal as from my understanding of it, only about a small percentage of claims will be viable.

If you are not interested in blemishing your credit file and your debts are not unenforceable, then there are still ways of clearing your debts quicker that can be looked into.

The best thing to consider if you have multiple creditors is to work out which is the most expensive debt, by way of the interest rate. Once you have ordered your creditors by their interest rate, simply target all of your spare cash each month on the most expensive debt.

This will get that cleared off quickest, then use the money you would have normally paid on the minimum payment, plus the excess that you have been paying and focus on the next most expensive debt, repeating the process until all of your debts have been cleared.

This method will ensure that over the life of your debts you have minimised the amount of interest you paid, and maximised the amount of capital that you could repay to your creditors.

If you are seriously struggling with your debts and cannot meet your monthly repayments, then you should consider speaking to a debt advisor about a possible debt management plan.

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