- Biggest protection
- A small emergency fund and a basic budget
- Warning signs
- Missed bills, using credit for essentials, hiding statements
- Loan sharks
- Report illegal lenders to Stop Loan Sharks: 0300 555 2222
- Act early
- Free advice works best before problems build up
On this page
Know where your money goes
Write down your income and spending for a month. You may find costs you had forgotten, such as subscriptions and annual bills. A simple budget shows what you can afford and where you can cut back. Our budgeting guide explains how.
Build a small buffer
Even a little set aside helps. A buffer means a broken boiler or a car repair does not go on a credit card. Start small, such as a few pounds a week into a separate account, and build towards a few weeks of essential costs.
Talk to a free adviser first
An adviser can look at your whole budget, deal with creditors for you and explain which option suits you. Get free debt advice.
Use credit with care
- Borrow only what you can afford to repay, and check the total cost, not just the monthly payment.
- Pay more than the minimum on credit cards where you can.
- Watch out for buy now pay later. Several small plans add up. See our BNPL guide.
- Do not use one credit product to repay another.
- Avoid payday and other high-cost loans. See payday loan debt help.
Plan for big costs
Christmas, holidays, car tax and insurance renewals and school costs are predictable. Spread them by saving a set amount each month. Our Christmas debt guide shows how this works for the festive season.
Warning signs to watch for
- Using credit to pay for essentials or other debts.
- Missing or paying late on bills.
- Only paying the minimum on cards.
- Avoiding opening post or checking your account.
- Borrowing to cover a gambling or spending habit. See gambling debt help.
If you spot these, act early. Contact your creditors, check your budget and get free advice.
Stay safe from loan sharks and scams
- Never borrow from someone who is not FCA-authorised. Report illegal lenders to Stop Loan Sharks on 0300 555 2222.
- Be wary of anyone who asks for an upfront fee for debt help or loans.
- Do not give your bank details to anyone who contacts you unexpectedly.
Get help early
The sooner you ask, the more options you have. Free, independent help is available from MoneyHelper, StepChange, National Debtline and Citizens Advice.
Frequently asked questions
How much should I save?
Any amount helps. A common target is enough to cover a few weeks of essential costs, but start with whatever you can manage and build up.
Is it better to pay off debts or save?
If you have expensive debts, clearing them usually saves more than a savings account earns, but a small buffer stops you borrowing again when something goes wrong.
Is a credit card a bad idea?
Not necessarily. Used carefully and paid in full each month, a card can be safe. The risk comes from carrying balances and paying only the minimum.
How do I stop impulse spending?
Use a list, wait 48 hours before non-essential purchases, remove saved cards from websites and unsubscribe from marketing emails.
What if my income drops?
Review your budget at once, tell creditors early and check what benefits you can claim. Do not wait until you miss payments.
This guide gives general information and is not personal advice. Rules and limits change, so check with a free adviser before acting. Last reviewed 11 November 2026.