Debt can be crushing—both financially and emotionally. If you’re mired by thousands of pounds-worth of debt, it can seem like there’s no way out, but there’s at least one thing that anybody in debt can do to start reducing the extent of their problem.

Pay it off, fair and square

It might seem like an impossible task but confronting your debt and working out the best possible route to pay it back should be your first point of call. Prioritise which debt is most urgent, and cut back wherever you can, even if that means altering your lifestyle in some way. Reclaim money wherever you can and make sure you’re receiving any benefits you could be entitled to. Over 400,000 homes in the UK are paying too much council tax, and families with an income of below £72,000 may be entitled to benefits in some way. Find out about your eligibility using a benefit checker and read up on council tax re-banding.

IVAs

If your debt is so serious that you’re considering declaring bankruptcy, stop and think about your options before you act. An Individual Voluntary Agreement (IVA) is a fixed term repayment plan that allows you to repay a reduced monthly amount, meaning you won’t have to resort to bankruptcy. An IVA is an option if you owe over £12,000 to two different creditors, and it’s a legally-binding agreement on both sides. All of the debt owed by an individual will be added together and an affordable monthly payment is calculated that is then divided between the creditors you owe money to. Your credit rating will be affected by an IVA, but it’s certainly an option worth enquiring about with the likes Gibson Hewitt before you declare bankruptcy.

Use savings to repay debts

After you’ve cut the costs of your debt wherever possible, it’s time to use your savings to help pay it off. The thought of letting go of your emergency cash fund might seem ludicrous, but debt often costs much more than savings earn when it comes to interest rates. If you pay off your debt with savings, then you’re relieving yourself of the extra debt caused by high interest rates on your credit card. If you’re worried about not having an emergency cash fund, don’t stress. If you have serious debt, you don’t need emergency cash; your priority is to get out of that debt as quickly as possible.