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Start Here: 3 Steps When Money Is Tight
If you’re behind on bills or worried about money, start with these three steps. They work whether your shortfall is £20 or £2,000.
Write down what’s coming in, what’s going out, and what debts/bills are urgent.
Prioritise housing, energy, council tax, food, travel to work/school.
Contact suppliers/creditors before it escalates. Payment plans are often easier earlier.
Free UK advice exists (Citizens Advice, StepChange, National Debtline).
Budgeting That Actually Works (Simple + Realistic)
A budget is not a punishment. It’s just a plan so you can stop surprises. Start with a “minimum survival budget” first, then improve it later.
Wages, Universal Credit, Child Benefit, PIP, pensions, maintenance.
Rent/mortgage, council tax, energy, water, food, travel, phone.
Credit cards, loans, catalogues, overdrafts, buy-now-pay-later.
If outgoings > income, you need support + a plan (see debt/benefits).
A quick budgeting method for families
- Weekly money: food, travel, small top-ups.
- Monthly money: rent, council tax, energy, phone, internet.
- If you’re paid weekly/fortnightly, split monthly bills into weekly amounts and set aside.
Mini “spending reset” (48 hours)
- Pause non-essential spending for 2 days.
- Check direct debits/subscriptions you forgot about.
- Plan the next 3 dinners (cheap staples) before shopping.
Priority Bills (What to Pay First)
In the UK, some debts have more serious consequences than others. If you can’t pay everything, deal with priority bills first and get advice.
Rent/mortgage arrears can risk eviction or repossession.
Can escalate quickly—contact the council early for a plan.
Ask about payment plans, hardship funds, and the Priority Services Register.
Often have enforcement powers—get advice quickly.
Non-priority debts (still important, but different)
- Credit cards, catalogues, personal loans, overdrafts, payday loans.
- These should be addressed, but focus on keeping your home and essentials safe first.
Debt: What to Do (Without Panic)
Debt feels heavy, but there are clear steps that reduce stress fast. Start by organising what you owe, then get free advice before agreeing to anything you can’t afford.
Who you owe, how much, minimum payment, due date, and if it’s priority.
Keep them in one folder. Open them. Take photos if it’s easier.
“I can pay £X per month” is better than missing payments repeatedly.
StepChange / National Debtline can help you choose the best option.
Common debt options you might hear about (UK)
- Token payments: temporary small payments while you stabilise.
- Debt Management Plan (DMP): one affordable payment for non-priority debts (often via StepChange).
- Breathing Space: a scheme that can pause interest/fees/enforcement for eligible people while you get advice.
- DRO / IVA / Bankruptcy: formal options—get specialist advice first.
Which option fits depends on income, assets, and the type of debt.
What to say on the phone (script)
- “I’m struggling financially. I want to arrange an affordable plan.”
- “Please put everything in writing / email.”
- “I can pay £___ per month. I can start on (date).”
- “Please freeze interest and charges if possible.”
Benefits & Support You Might Be Missing
Lots of people are entitled to help and don’t realise it. Checking benefits can increase income more effectively than cutting essentials.
Check elements: housing, children, childcare, limited capability for work.
Local council support, Household Support Fund (availability varies).
PIP / DLA / Attendance Allowance (depends on circumstances).
Free school meals, Healthy Start, childcare support, Child Benefit.
Best first step: use a benefits calculator
- Turn2us benefits calculator
- entitledto
- Citizens Advice support
Have handy: rent amount, council tax band, earnings, childcare costs, and who lives in the household.
Avoiding Scams (Especially When Bills Are High)
Scammers target people who are stressed about money: fake energy support, “urgent” bank texts, delivery scams, council tax refunds, and loan scams. Use these rules to protect yourself.
If it pressures you (“today only”, “urgent”, “account locked”), pause.
Go to the website/app yourself. Use official numbers.
Call back using a trusted contact (bill, card, official website).
Never share bank/WhatsApp verification codes—even with “staff”.
Common UK money scams to watch for
- “Energy grant” forms asking for bank login or full card details.
- Fake HMRC refund texts/emails.
- “Hi Mum” / impersonation messages asking for money.
- Debt relief ads that charge high fees (use free charities first).
Checklists (Take Control in Small Steps)
This Week: Get Clear
This Week: Reduce Outgoings
This Month: Increase Income
Money & Bills Quick Quiz
1) If you can’t pay everything, what should you usually prioritise first?
2) A text says your bank account is “locked” and asks you to click a link. What’s safest?
Help & Support (UK)
Free, trusted support (start here before paying for “debt help” services):
Reporting scams (UK)
- Action Fraud: actionfraud.police.uk
- If money has left your account, contact your bank immediately.
Downloadable Budget Sheet (Print-Friendly)
Tip: click into the table and type your numbers. Then print, or download a CSV to open in Excel/Google Sheets.
| Section | Item | Amount (£) | Notes |
|---|---|---|---|
| Income (Monthly) | |||
| Income | Wages | Pay day? | |
| Income | Universal Credit | Next statement date | |
| Income | Child Benefit / Other | ||
| Priority Bills (Monthly) | |||
| Priority | Rent / Mortgage | Due date | |
| Priority | Council Tax | ||
| Priority | Gas / Electric | Supplier / meter type | |
| Priority | Water | ||
| Essential Living (Weekly) | |||
| Essential | Food | Budget target | |
| Essential | Travel (work/school) | ||
| Essential | Phone / Internet | Contract end date? | |
| Non-Priority Debts (Monthly) | |||
| Debt | Credit card / Loan | Minimum payment | |
| Debt | Catalogue / BNPL | ||
| Notes / Next Actions | |||
| Actions | Who will I contact this week? | Example: council / supplier / StepChange | |
If you’re behind on rent, council tax, or energy, get free advice early (Citizens Advice / StepChange / National Debtline).