Budgeting just means “controlling your money”. This is the main way to get out of and stay out of debt. Everyone can work out a Personal Budget. You don’t need any special skill or knowledge to do it. Personal Budgets are also called Financial Statements.

Working out a Personal Budget means you know for sure what you can afford to spend on the things you want, after paying for the things you need.

Budgeting for priorities

Some bills are more important than others. These are ‘priority’ bills.

They are a priority because not paying them means you might get your gas or electricity cut off or be taken to court, or lose your home.

Priority bills are things like:

  • rent and service charges
  • mortgage
  • council tax
  • gas
  • electricity
  • benefit or tax credit overpayments
  • taxes
  • fines
  • secured loans

Get lists of priority bills from:

Step Change

Non-priority bills are things like:

  • broadband, phone and TV
  • mobile phone
  • car payments
  • credit or store card  or catalogue payments
  • unsecured loans
  • water rates

Choose one of the 3 options below to help yourself get in control of your own money.

OPTION 1 → I am behind with a priority bill

OPTION 2 → I am behind with a non-priority bill

OPTION 3 → I’m not behind with my bills

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