It is important to know how much you have to spend each month and how much money you have left over once you have covered your living costs.

The first thing to do is to list all your outgoings. It is important to be completely honest, so don’t underestimate the cost of things or leave anything out. Also remember to include the amounts you have to pay towards your debts.

Once you have accounted for everything, add it all up and compare the figure to your total income. If your income is greater than your outgoings, any difference is disposable income. If the outgoings exceed your income, you are living beyond your means and will have to cut your spending or increase your income.

Spending reductions

If you need to cut your spending, first work out your essential spending commitments and priority bills. Then try to make savings wherever possible.

If, once you have cut all non essential spending, you find that you are using credit to live on, you need professional debt advice. You should also seek help if you already have arrears on your priority bills.

Expert debt management advice

If you need expert credit and debt management advice, we can provide it for free and in complete confidence. As the UK’s number one debt charity, you can rely on us for impartial and professional debt counselling.

Visit CCCS Debt Remedy, our online service. Debt Remedy can help you create a budget online and provide advice on how you can prioritise your spending.