Also read what the editor has to say on the subject:

• Free yourself from debt

Becoming and staying debt free takes time and effort. If you can't sleep at night because of your debts, these tips might be for you?

By developing better debt management skills and changing your spending habits you can get out of debt and, most importantly, avoid getting stuck in the same trap again.

Here are a few basic tips to keep in mind if you want to become debt free:

1. Put together a monthly budget (click here to learn how) and stick to it. Review it each month and see where you can save.

2. Never fall behind on any of your monthly payments. This means credit cards, store cards, utility bills and any other financial obligations you may have. (Click here to learn how you can improve your credit score.)

3. Only buy on credit if you can afford to pay the monthly installments.

4. As a rule of thumb, always have at least three months' living expenses tucked away in case of an unforeseen accident or loss of employment. (Click here to learn how to build an emergency fund.)

5. Divide your savings as follow:

   • Education (How many kids do you have and how much will it cost to put them through school and university or college?) (Click here for advice on saving for your child's education or here for money tips for students.)

   • Weddings (Do you have girls or are you planning on getting married?)

   • Savings for a replacement vehicle. (What state is your current vehicle in and how long will it last?)

   • Retirement. (Where do you currently stand with your pension? How much do you aim to have saved up for your retirement?)

   • Savings for other major purchases.

   (Click here for the latest articles on retirement and here for the best short-term returns.)

6. Learn to negotiate a better deal on everything. Negotiation is an art form that anyone can learn. By employing a little bit of haggling you can put some extra money in your pocket.

   (Click here for the latest articles on making ends meet.)

7. Understand the interest charges. When you take out a car hire-purchase loan, a housing loan or when you use your credit cards you must understand that you will be paying an extra amount of money to cover the interest charges.

   (Click here to learn how you can beat the bank and pay less interest.)