How to take control of your debt

Whether you’re behind on payments, worried about rising bills or just unsure where to start, this guide will walk you through the first steps – simply and clearly.

Step 1: Understand what you owe

Before you can move forward, you need a clear picture of your current debts. Start by writing down:

• Who you owe money to (your creditors).
• How much you owe.
• Whether any legal action has started (like a CCJ).

You can get this information by checking your credit report. This gives you a full overview of your debts, credit score, missed payments and any defaults or court action.

Step 2: Look at your income and spending

Next, work out how much money is coming in – and where it’s going. Understanding your finances helps you figure out what’s realistic and what’s not.

Start with:

• Your income (wages, benefits, pensions).
• Essential expenses (e.g. rent/mortgage, bills, food, transport, council tax).
• Any non-essentials or forgotten payments (e.g. subscriptions, takeaways, unused memberships).

Even small savings can make a big difference when you’re trying to reduce debt.

Step 3: Explore your options

Once you know what you owe and what you can afford, it’s time to look at your options. There’s no one-size-fits-all answer – and you don’t have to figure it out alone.

Explore some of the debt solutions out there that could help you move forward.

Step 4: Manage your money going forward

Getting out of debt is one thing – staying out of it is another. Once your plan’s in place, here’s how to stay on track:

Set a realistic budget

Start by listing your essential monthly costs:

• Rent or mortgage
• Utilities (gas, electricity and water)
• Council tax
• Debt repayments
• Food and fuel
• Insurance, mobile phone costs and internet
• Childcare or travel costs

This helps you stay in control and avoid missing payments or borrowing again.

Make smart money moves

• Cancel unused subscriptions
• Switch providers for energy, insurance or broadband
• Use loyalty cards and cashback sites when shopping
• Plan meals and shopping lists to cut food waste and overspending

Even small changes free up cash you can use to clear debt or build an emergency fund.

For more help managing your money day-to-day, check out BudgetSmart – it’s full of practical tips to help you stay in control all year round.

Need support?

You don’t have to go through this on your own. Our friendly, trained advisors are here to help you understand your situation, talk through your debt options and create a plan that works for your budget and goals.

Get debt help online or call us on 0800 316 1833 for a confidential conversation.