- Make a budget
Making a budget can really help, especially if your debt is due to overspending on things you don’t necessarily need. A budget is a simple but powerful tool that can help you see exactly where your money is going. By knowing how much you’re spending and where you can cut back, you’ll have a clearer idea of how to prioritise your payments and take control of your debt. Find out more about creating a budget here.
- Shift your debt
If you have multiple debts, it can feel overwhelming managing different payments and interest rates. One option to make life easier is to shift your debt. By consolidating your debt with one or two lenders you could reduce your monthly payments and pay less interest. This could help you focus on clearing your debt more effectively, as you'll only have one amount to pay each month at one interest rate. Find out more about your options on Money Supermarket.
- Add up your debts
The first step in tackling debt is knowing exactly where you stand. Add up your debts by writing down how much you owe and to who. This gives you an overall picture of your situation, which will help you decide the best way forward. Don’t worry if this feels overwhelming at first – we’re here to support you as you take the next steps.
- Prioritise your debts
Once you’ve listed your debts, it’s time to prioritise them. Sort your debts into 'priority' and 'non-priority'. Priority debts typically include rent, utility bills, and anything that could affect your home. Non-priority debts may include credit card bills or loans. Understanding which debts to focus on first can help you manage the situation more effectively.
- Speak up
If you’re struggling with debt, it’s important to speak up. We’re here to support you. If you’re feeling overwhelmed, contact us as soon as possible, and we can help you with practical steps to manage your finances and reduce your debt.
Most lenders are willing to work with you and many can put you on a payment plan or even pause interest if you explain your situation. The key is to reach out early. Ignoring your lenders could make things worse but having an open conversation can help you find the right solution.
Debt Awareness Week is a reminder that you don’t have to face debt alone.
There’s no shame in needing help and taking control of your finances doesn’t have to happen all at once. Start with small steps – create a budget, understand your debts, and speak to someone for support. We’re here to help make life easier to manage, and we’ll work with you to help you regain control over your money.
Take the first step today. Through our Better Days programme, we’ve partnered with Citizens Advice to provide you with expert advice and support across a range of services. Visit our MyMoney webpage for more information. If there’s one near you, you can also pop into one of our Orbit Community Hubs to see your local Community Connector who will be happy to speak with you.
