Now, on the right hand side of the paper write down all the money that’s coming in each month. This will probably be a much shorter list and will include wages if you’re working, any benefits you might receive, etc. etc.

The next thing we need to do is add up the two columns. If the number on the left hand side of the paper is higher than the number on the right, your debt problems are only getting worse at the moment. If the number on the right is higher, solving your problems should be much easier.

Whichever result you got, just the simple task of writing down all this information will show you a true picture of your immediate financial situation and should help you to realise where all the money’s going.

If the column on the left is the higher value you’re going to need to start working down that list and seeing where any savings can be made to get the total down below the other side, or look at the other side and see how you might get the total up, although this is significantly harder.

Remember selling things is only going to give a short term boost to your finances, if without the sale the column on the left is still greater that the right, your debt problems will only return again later so don’t think that selling things will solve all your problems.