Money & budgeting · 5 min read
How to make a budget that actually works when you're in debt
A good budget is the foundation of every debt solution. It shows exactly where your money goes and what you can realistically pay without falling behind on essentials.
Step 1: Add up your income
Include take-home pay, benefits, pensions, maintenance and any regular extra income. Use monthly figures — for weekly amounts, multiply by 52 and divide by 12.
Step 2: List your essential outgoings
- Rent or mortgage, council tax and energy
- Water, phone and broadband
- Food and household essentials
- Travel to work and car costs
- Childcare and insurance
Step 3: Look for savings
Check for better energy tariffs, social broadband tariffs, unused subscriptions and whether you're claiming every benefit and discount you're entitled to.
Step 4: See what's left
What remains is what you can put towards debts. If there's nothing left — or less than your minimum payments — that is a clear sign to get help.
This article is general information only and may not reflect your circumstances. Rules and limits can change, so always check the details with an authorised provider before making a decision.
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Why do we ask this?
Your total debt amount helps us match you with solutions designed for your level of borrowing.
