After working out your budget, you should know how your income and your spending compare. If you are spending more than you earn, you should think about reducing your outgoings.
You should divide your spending into essential items and non-essential items. Essential items are likely to be things such as food costs, your utility bills and your rent or mortgage.
Non-essential spending should be the easiest to reduce. But you may be able to cut spending on essential items. For example, you could switch to cheaper energy suppliers and lenders.
If you’re making regular credit repayments, or have unsecured loans, these can often be reduced or stopped while your income is reduced. Contact the lender to explain your circumstances.
Don’t try to reduce essential costs to allow you to continue with these repayments if you can’t afford to.