Dealing with debts can be difficult, especially when (like most people) you've got a whole host of other expenses to cover each month.

So, if you are wanting to clear your debts - what could you do? Here, we take a look at how you could start clearing your debts in two steps.

Create a budget

The first thing you could do is create a budget - this is a simple task, but can help you to keep on top of your finances and remain in control of your debts, making sure they don't spiral out of control.

To create a budget, you should simply write down everything you earn each month, followed by everything you have to spend each month (your essential expenses, such as mortgage/rent payments, utility bills, food). Now subtract the amount you spend from the amount you earn - this will leave you with what's known as your disposable income.

Your disposable income is the money you have to pay towards your unsecured debts (credit cards, for example, overdrafts and personal loans) each month. You should take a look to see if your disposable income is enough to cover the cost of your debts each month. If it is, and you are actually left with spare money after covering your debts, you should consider making overpayments.

This basically means you'll be paying more than the required amount each month… meaning you'll be clearing your debts at a faster rate (and will be debt free sooner).

Seek professional debt advice

Once you have created a budget (or beforehand, if you prefer), you could seek professional debt advice. By seeking debt advice, you can get an expert's opinion on your situation and receive tips and guidance on how you could improve your situation.

Debt advice is often offered for free, so you won't need to worry about forking out any more money!