Financial DEBT Advice

How to work out your budget

If you have debts, you’ll need to work out if you’ve got enough money to pay off what you owe.

To do this, you will need to work out how much money you’ve got coming into your household and how much you need to spend. This is called your budget. Once you’ve worked out your budget, you’ll be able to see how much you’ve got left over to pay off your debts.

If you are worried about how to deal with your debts, we can offer free, confidential advice available and also sign post you in the right direction

But firstly:


Listing your income

The first thing you need to do to work out your budget is list all the income for your household. Be honest and make sure that the amounts are realistic.

The list of your income should include:

Wages or salaries for your partner and yourself.

Put in your net earnings, that is, after deductions. This should be the amount you regularly receive. If the amounts are different each month, average them over three or six months

Any benefits you are paid, including Child Benefit and tax credits

Maintenance from an ex-partner for you or your children. Include any Child Support from the Child Support Agency

Contributions from other members of your family and any lodgers.

Think about the ways in which you might earn extra money or increase your income. You may be able to claim benefits or tax credits. There’s a useful website that lists organisations which give grants to people in need. For example, it lists some charities which give grants to people to help pay their bills or buy essential items.

The website address is:

For a 121 support discussion and more information, please contact Debbie our qualified Community Advice Consultant.