How to clear your credit cards

Once you know how much you are spending on different items, you can look at ways to reduce these costs. For example, think about where you are shopping for your groceries - could you cut costs by buying the own-brand items in the shops? How much food do you throw away each week because it has gone out of date before you use it? It may be that if you can buy food for just a couple of days at a time, you will save yourself money in the long run.

Are you paying for subscriptions to services you no longer use? Check all of your direct debits and standing orders to make sure they're still necessary, if not cancel them.

Take a look too at how much you are paying on your other items, such as insurance and utility bills, and check to see if you can get a better deal elsewhere.

You can use comparison sites to work out whether you are overpaying for your household bills and insurance, and if you are then reduce your payments by getting a better deal from a different company. It doesn't take too much time and the effort will be well worth it when you see how much money you could free up from the process.

If you keep on getting stung by late payment or unauthorised overdraft fees it's time to get control of your finances. Sign up to online banking and keep a close eye on what's coming in and going out of your account so you never get caught out again.