More money going out than coming in? Here’s what to do

If you’re spending more money than you’re making, before you can even think about saving, you need to start doing some damage control.

The first thing you need to ask yourself is: am I in problem debt?

Lots of us have debts as part of our everyday lives – an overdraft, credit cards, a car on finance – without it ever being a problem…until something goes wrong.

You might have simply borrowed more than you could afford. Or maybe your income went down so you couldn’t afford your repayments any more.

Either way – there’s no strict definition of problem debt. But here are some questions to ask yourself to help you decide if your debt is becoming a problem:

• Are you using balance transfer options and refinancing, rather than paying off your debt?
• Do you always seem to be making minimum payments?
• Are minimum payments taking up a large proportion of your expenditure?
• Have you got debts with collection agencies?
• Do you use credit to buy regular, everyday items?
• Does thinking about your debt or debt repayments leave you with a sinking feeling in the pit of your stomach?

If you answered yes to a few of those – especially the last one – then it may be time to get some debt advice.

Free debt help

That doesn’t necessarily mean you need to start a debt solution – simply chatting through your budget with a specialist, one-to-one, could make a world of difference. If you’d like to speak to one of our experts at Financial Wellness Group either call 0161 413 4782 or visit our website for more details – including how to webchat with an adviser. Or, if you prefer, you can visit the Money Helper website to find sources of free debt advice.

If you don’t have any debts but you still have a zero or negative magic number, it’s time to make some changes. You might already have seen our free guide to making your money go further, by cutting your costs and increasing your income. If you’ve so far only taken one or two of the actions suggested in that post, it’s time to go through it again – with a vengeance! Take a look at every suggested action in there and have a go at applying every single one that is relevant to your circumstances. You can’t afford not to.