How to clear your credit cards

This is by far the most difficult part of working out your spending. Totting up your spend on everything from coffee to birthday presents is not easy, so start from the top.

Use old receipts; bank statements, invoices and diaries to calculate your average monthly spend. Overestimate each figure if you can't remember exactly.

You'll need to include:

• Home entertainment (include: satellite and cable TV, cinema, theatre, music tickets, books, CDs, DVDs, computer games, hobbies, magazines, newspapers etc.)
• Eating and drinking outside home (include: fast food, takeaways, coffee, pubs/bars, restaurants)
• Gifts (Christmas, birthdays, weddings, new babies etc.)
• Health (include: dentist, gym, contact lenses, beautician, hairdresser, food supplements etc.)
• Holidays (include: weekend breaks, duty free)
• Days out (include: children's amusements, museums, extra travel i.e. car club, train tickets etc.)
• Special occasions (dinner parties, children's birthdays, BBQs, anniversaries, babysitters)
• Alcohol and tobacco
• Club memberships

Jot down the figures one section at a time and use a calculator to calculate your average spend on luxuries each month.