DEBT can be a huge drain - both financially and emotionally.

And while I fully recognise that this isn’t always easy, by paying down any sums you owe you’ll be in a much stronger position to save up for those things that really matter to you.

For example, you might want to treat a loved one to a special gift… Or plan that holiday you’ve been considering for years.

According to a survey by banking giant HSBC, clearing debt is the main long-term financial goal among people in the UK.

What’s more, those responding to the survey deemed this more important than saving for big purchases, taking early retirement, paying off the mortgage and saving for a property.

However, just half of those polled said they know how much interest they’re paying on their current debts - which means many could be paying more than they need to in repayments by failing to pay off high-interest debts first.

Similarly, only 11 per cent were found to have combined their debts into one place to make them easier to manage.

This simple step has the potential to make a massive difference in a short timeframe.

The peace of mind that comes with paying down debt can’t be understated, as the constant worry about minimum payments and deadlines can take a huge toll on your mental health.

When that worry is removed, you quickly feel as though you’re starting to regain control over your finances and – with that – comes increased security about your future.

You also won’t have a sense of panic if anything unexpected happens, as you can build a cash reserve in case you’re hit with sudden expenses, such as a leaky roof or the need to replace the washing machine.

This sense of freedom can help you take a look at the bigger picture and focus on achieving those larger ambitions that are right for you and your family.

From booking a holiday to saving for your retirement, these goals are far more achievable and realistic if you’re not battling monthly debt repayments at the same time.

According to the HSBC study, six in ten people are confident in their financial resilience and feel able to handle surprise expenses over the coming year.

Furthermore, over half said they feel confident they’re in a position to achieve their financial goals for the next 12 months.

But with so many failing to take steps to pay down their debts, you have to wonder whether some of this confidence could be misplaced.

If you’re struggling with your debts, the best course of action is to speak to someone who can provide you with advice that meets your specific requirements.

For some, a conversation with Citizens Advice might work, while others might choose to speak to specialist debt charities like Step Change or National Debtline.

Indeed, HSBC has also produced an excellent - and readily understandable - guide to debt consolidation which can be accessed HERE.

Others might prefer to speak to an independent financial planner, who can help you make appropriate financial decisions according to your individual circumstances.

The important thing is to take decisive action at the earliest opportunity to pay down your debts.

That way you’ll also have the peace of mind that comes from knowing you’re truly on course to achieve your objectives in life.

If you have any questions about the best way to get your finances on track, please get in touch with Jillian or another member of the Future Life Wealth Management team by clicking HERE.

No individual investment advice is given, nor intended to be given in this article and liability will not be accepted in respect of any action you may take as a result of reading this article. If you are unsure you are urged to take independent investment advice.