Dos and don’ts

Do be realistic when working out your expenses

Do monitor your spending. You’ll be able to identify where your money is going and where you can make cutbacks

Do plan ahead for large expenses, like weddings, university, holidays or retirement

Don't underestimate your spending

Don't forget to include the occasional items you spend money on – such as presents, dental care and car repairs

Don't use different time periods for working out your budget. If your income is a monthly figure then your spending should be a monthly figure too

Do shop around for special offers and sales on the items you want

Do compare value for money. For example, buying in bulk may cost less in the long term

Do switch to cheaper suppliers using the uSwitch.com comparison and switching service. You could save on essentials, like gas and electricity

Don't make impulsive purchases. Allow yourself some time to consider items rather than buying them then and there

Don't be fooled by sales. Buying an item that is reduced still costs you money. If a £100 item is reduced by 30%, don’t think of it as saving £30, think of it as costing you £70

Don't buy something if you are better off renting or borrowing it. For instance, use the library instead of buying books and rent DVDs instead of buying your own copies

Do shop around for a credit card that matches your needs, such as one with a low interest rate or cashback

Do pay the balance off your credit card before the interest kicks in – or at least, make your minimum repayments on time

Do transfer any outstanding balances from your cards to one card that offers a low interest rate on balance transfers

Don't use your credit card like cash. You will be charged interest on your purchases and it’s a higher rate for cash withdrawals

Don't sign up to a store card before you’ve read the small print. Most store cards have a high interest rate

Don't let yourself get a bad credit history. If creditors record that you owe them money, you could get a negative rating that lasts for six years

Do prioritise your debts. Focus on paying the debts that may result in losing your home or essential supplies (like gas and electricity)

Do get in touch with your creditors. Once they are aware of your situation, they will usually understand your difficulties and agree to a payment plan

Do ask for free specialist advice from a charity like Credit Action

Don't ignore the problem - it won’t go away. There are ways to deal with your debt, which we guide you through on this site

Don't borrow more money to pay off your debts, unless you seek independent advice first

Don't keep the problem to yourself. Communicate with your family and friends so they can help you work towards a solution