Hundreds of thousands of families are struggling to manage their debts. If you are one of them, here are ten simple steps you can take to get back in the black.

1. Don't bury your head in the sand

Make contact with your lender as soon as possible, preferably before you default. Explain your situation and emphasise your willingness to pay what you can. You should

be able to negotiate an achievable payment plan or a stop-gap payment holiday. Reply to all creditors' letters, obey any court summonses and abide by county court judgments. Lenders and courts will be more sympathetic, and lenient if your good intentions are clear.

2. Prioritise your debts

First tackle those that threaten your home, energy supplies or liberty. These could be mortgage payments, utility bills and council tax arrears.

3. Draw up a budget

List your income and outgoings, using pen and paper or an online budget calculator, and review your spending. Use comparison websites to switch to cheaper deals on utilities. Then cut back wherever possible. Giving up smoking could save, say, £2,000 a year. It may also be advisable to use any savings that you have to pay off debts, which are likely to be incurring more interest than you are earning.

4. Be clever with plastic

Pay more than the minimum repayment on your credit card. Research by uSwitch.com, the comparison website, indicates that paying 3 per cent, rather than 2 per cent, can more than halve the interest paid and the repayment time.

5. Go in search of free independent advice

The Consumer Credit Counselling Service (CCCS), the charity, has a debt advice line on 0800 1381111 and will refer complex cases for face-to-face sessions. Credit Action, a sister charity, offers guides and resources at CreditAction.org.uk. An alternative service is the National Debt Helpline on 0808 8084000.

6. Don't borrow to pay off exisitng debts

Unless you are told otherwise by an independent adviser, this is likely to increase your burden in the long run.

7. Do not consolidate your debts

Consolidation loans are secured on your home, unlike many of the debts that they wrap up. Chris Tapp, of Credit Action, says: “In most cases these loans are more expensive than negotiating with your creditors.”

8. Avoid debt managers

These charge for advice that is available free from charities. Most take a fee upfront, plus 10 per cent on payment plans, so £20 of a £200 monthly repayment goes to the middleman.

9. Don't rule out bankruptcy or an IVA

When debts run out of control, these options can become the neatest solution. Mr Tapp says: “That's something that a debt charity would advise on. But don't be sold an ‘easy way out' by a private company.”

An IVA (individual voluntary agreement) is a formal agreement to repay a percentage of the debt over three to five years. This can be a good option because you will not have to pay back the full amount and will be debt-free in five years. However, IVAs must be arranged by an insolvency practitioner and the fees can be £3,000 or more.

10. Share your problem with family and friends

This could unlock useful help and advice, and reduce the pressure to keep up appearances. For example, friends in the know are less likely to suggest expensive nights out.