Seven things to do if you're struggling with your bills

Don't bury your head in the sand - if your monthly outgoings are a bit stretched, there are things you can do to get your finances back in shape!

It's easy to get carried away with the snippets of good news regarding the economy that are coming out every day at the moment. However, you're unlikely to be feeling very optimistic if you are struggling to make ends meet each month.

And there are plenty of Brits in that situation - Citizens Advice, for example, receives as many as 9,000 calls a day from people with debt issues.

To try to help, the Government has this week launched a new section on its DirectGov website containing lots of useful advice and guidance videos for homeowners and renters who face the prospect of having their home repossessed.

If you are one of those struggling to meet your monthly commitments, then read on for my seven top tips to ease your financial troubles...

Tip #1 - It's good to talk

Whether it's your mortgage, energy bills, or even council tax that you are struggling to pay, the first step should always be to talk to whomever you owe the money to.

Certainly with mortgages, you will be far from the first borrower to approach a lender in a bit of trouble. Most lenders will now have specialist staff to consider your position and possibly revise how much you pay each month.

Energy suppliers may also be able to switch you to a cheaper tariff.

You should contact your local council if you're struggling with your council tax bills as they may be able to help.

Tip #2 - Get some advice

We are big advocates of independent advice at lovemoney.com, and if you are worried about your debt situation, then you should definitely speak to a professional for a bit of advice.

The obvious place to start is Citizens Advice, but there are loads of other brilliant outfits that can advise you on how to improve your situation without charging you a penny, including the Consumer Credit Counselling Service and the National Debtline.

For a full run down on what these organisations offer and how they can help you, be sure to check out Get out of debt with free advice.

Tip #3 - Sort your budgets out!

This is something I have never been that good at, but it's essential if you are going to get out of the red and into the black!

It's massively important to get it down on a piece of paper in front of you just where your hard earned cash is going each month. It's the only way you can work out what you can afford to cut out and start reducing those monthly outgoings. I know it's a pain, but if you take the time to do it you'll immediately see where you can make a few savings. Try this free budget calculator from the Financial Services Authority.

For some help and guidance on sorting out a budget plan, be sure to have a read of How to budget in five simple steps.

Tip #4 - Reduce your spend on essentials

Luckily for you, lovemoney.com can help you reduce how much you pay out each month on your essentials.

If you don't read Frugal Food each week then you must be crackers - it's an essential read, with the best round up of all the latest food offers from your local supermarket. You'll soon see the results of shopping around for your groceries.

If your energy bill is getting a bit painful, then you can always look for a cheaper tariff via our search engine. Alternatively you can follow the terrific tips in Five ways to slash your energy bills! And don't get caught out by the petrol duty rise - if you drive to work every day, then you cannot afford not to read Seven ways to beat the petrol price rise!

And if you still haven't found what you are looking for, why not adopt this goal: Manage on a small budget.

Tip #5 - Make a few extra quid

This can be from doing something simple like flogging some of your unwanted junk on an auction site, to something a little more significant like taking in a lodger. Anything you can do to increase the amount of money coming in each month should be considered.

You can get some dead easy tips in Eight ways to make money from the internet, while you should also have a scan of Five ways to make thousands from your home!

Tip #6 - Get what you're entitled to!

If your family income comes to less than £66,000 a year, there's a decent chance that you may be entitled to some form of benefit.

Pop over to Entitledto.co.uk , put in a few details about your situation, and it will tell you within a couple of minutes whether you are entitled to some Governmental help. Similarly, check out this Beginner's guide to benefits on the DirectGov website.

Millions and millions of pounds in benefits and tax credits go unclaimed each year, simply because people are unaware that they qualify. And those credits could go some way towards reducing your burden, so make sure you check whether you are entitled to any by taking this short quiz.

Tip #7 - Wave goodbye to interest

The obvious one with this is your credit card payments - and believe me, I'm speaking from experience. Until a couple of months ago, I was paying out more than £100 a month on my outstanding debt (as well as stupidly continuing to spend on the same credit card), racking up interest. Daft!

Now I've signed up to a credit card with 0% interest on balance transfers for 15 months, my payments have halved and I will have that debt paid off before the promotional period expires. The money I'm saving each month is going into a savings account, so in one little move I've significantly improved my position.

A great read for tips like is 3 ways to get back in the black fast!

The essential thing to remember is that you are not alone - there is plenty of help available to you if things are starting to get a bit stretched financially. If you kid yourself that everything is absolutely fine, things are only likely to get worse.

More: The secret way banks are damaging your credit rating | You've got a debt problem