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Get to grips with your money

Step 2 – Take action

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Not much money left over?

If you find that you're regularly struggling to make ends meet, you will need to reduce your spending. Our tips below may help.

  • Try cutting back on non-essential items. What could you do without to help you get back on track?
  • Check the APR on your credit card or loans. This shows the overall cost of borrowing including interest and charges. See if you can shop around for a better deal.
  • You may save money by switching services such as phones, electricity or gas to new suppliers. Try Energywatch, the gas and electricity watchdog's website – see Get more help. There are also various internet switching services or search engines you can use.

Getting into difficulties?

You may have the beginnings of a debt problem if you find yourself doing any of the following:

  • Using credit to take out cash advances, pay bills or pay your mortgage repayments.
  • Being tempted to take out a consolidation loan to reduce monthly payments on servicing your debts.
  • Paying no more than the minimum payments due on your credit cards.
  • Borrowing money without planning how you're going to pay it back.

Think carefully about borrowing more money to pay off existing debts. It could make things worse.

To find out whether you have – or are likely to have – problems with your borrowing, take our Debt test. It will also give you some tips to help you avoid debt problems or help you tackle your debts if you're in trouble.

In trouble?

If you're struggling with debt, try not to panic – you're not alone and expert help is available. Several organisations offer a free service, either face-to-face or by phone. They will help you set up a budget sheet, prioritise your debts and work out how you can live within your means – see Get more help.

Talk to the people you owe money to (for example, your utility suppliers) if you are having problems paying them back – they may be able to help you manage your repayments.

Whatever happens don't ignore the problem – help is available – see Get more help.

Making your budget work for you

Once you've got your budget sorted, it's time to get it working for you. Here are a few ways to get started.

Think about your financial priorities or goals. They could be:

  • In the short term
    • Paying off or reducing your debts.
    • Saving up for furniture, a holiday, or a deposit for a home.
    • Taking out insurance to protect your family or home if things go wrong.
  • In the longer term
    • Saving for your retirement.

If you need help identifying your priorities, our confidential Financial healthcheck can help.

What next?

Explore more guides

  • Saving for tomorrow – whether you're putting money aside for emergencies or saving for your future goals, this guide gives you some useful tips.
  • Are you covered? – find out how to protect yourself and your family against unexpected events.
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