How to clear your credit cards

This is a more complicated calculation for some than for others, largely depending on whether you earn a salary, some other form of fixed income, or have a variable wage.

If you do not already know how much you get paid - and to be fair, most of us do - then you can find out by either checking your monthly payslips - assuming you have not been paid any overtime or bonuses for that month - or by asking your boss or HR department if you have one.

Fixed wage
Are your earnings the same from month to month? If so, find the figure after tax and write it down.

Variable wage
Does your wage change from one month to the next? If so you'll need to add up the total after tax you earned each month, then divide by the number of wage slips to give you an average. For example, if you have the whole year, which is twelve months, divide the total by 12. This figure is your average monthly wage, so note it down.

Alternatively, if you have not had a pay rise since you were given your employment contract, then your salary should be detailed within that. If you have had a pay rise, then you will need to find out another way.

If you work for yourself, then check your latest self-assessment return sent to HM Revenue & Customs by yourself or your accountant for the latest salary listed.