Before the global financial downturn, living on credit was the norm globally. But there has been a worldwide wake-up call and individuals are increasingly realising that living in debt hampers wealth creation and the improvement of living standards. The good news is that with the right guidance and strategy, paying off debt and living debt-free is very achievable.

Here are six simple steps to achieve short-term debt relief:

1. Draw up a realistic monthly budget

   Compile a list of your monthly income and expenses. Your income should cover expenses comfortably. If not, see where you can cut back. Renegotiate interest rates on properties, ask for more competitive vehicle and home insurance quotes and cut down on unnecessary spending.

   Try distinguishing between your 'wants' and your 'needs', but don’t cut out all of your 'wants'. If your budget is too tight and boring, you are more likely to stray after a month or two.

   Work some contingency money into your budget and define a realistic amount to save. If you have spare cash at the end of the month, use it to clear your debt quicker.

   Click here for Personal Finance and Property Editor Kabous le Roux's advice on how to budget.

2. Pay expensive debt first

   The higher the interest rate on your debt the more expensive it is, so when paying off debt, pay the most costly ones first.

   Credit card and store card debts are likely to be the most expensive. These and personal loans can cost you up to 20 percent in interest.

   It helps to pay more than the minimum amount owed each month because the interest you owe will automatically decrease.

   But do not stop paying your other credit providers — you do not want to jeopardise your house or risk losing your car. You could also be blacklisted, which will make it very difficult to obtain credit in future.

   Click here to learn why Personal Finance and Property Editor Kabous le Roux suggests you don't pay your most expensive debts first.

3. Become a financial wise guy

   Spend smart. It is possible to find good quality and low prices if you shop around for the best deals. Shop around for the best clothes prices, cell phone package and medical aid deal.

   Try to refrain from going on a spending spree at the beginning of each month only to dip into your overdraft by the 15th of the month. Try breaking bad spending habits (click here for advice on breaking a spending habit). And refer to your budget to see what is not essential in your monthly financial mix.

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