Is Budgeting Critical Or Reducing Spending?

The two different views on budgeting are shown below – the first aiming at controlling spending and the second more long term planning.

Control my spending

How to pay off debts (England and Wales)

There are a number of financial vehicles you can use to pay off your debts.  These are listed below, with links to where you can find out more information on any option through the Money Advice Service.


  1. Debt Management Plan (DMP) – for non-priority debts through DMP provider
  2. Debt Relief Order (DRO) – if you’re on low income with few assets
  3. Individual Voluntary Arrangement (IVA) – Legally binding, lasts 5-6 years, pay back what you can afford
  4. Bankruptcy – assets taken and writes off all debts but fresh start
  5. Offer in full or final settlement – you offer lump sum or monthly payments for agreed period to cover part of debt
  6. Writing off debts – only if no income assets or savings – e.g. if you are severely ill
  7. Administration order – if you owe <£5.000 and can make payments and one debt is a CCJ

Plan my finances

You might feel you need to talk to someone – in which case there are two main choices.  One is someone you trust – a family member or friend, preferably someone who has some life experience in this area.  The other choice is someone impartial who specialises in this area. There are a number of free advice services available in the UK.

You can get free advice from a number of charities – StepChange is a debt charity and they will deal with you over the phone or on-line.

The National Debtline are another charity and offer free support via webchat and phone – they also offer a debt support brochure you can download here.

Our partners at the Money Advice Service will provide you with information on who you can deal with – either by telephone, online or even face to face – they list local services.  You can access this by clicking the link at the bottom of the page.

Talking things through with an experienced debt adviser is a good idea before you make a decision – there are many ways to clear your debts and some are more well known than others.  If you follow our links they are free so your money will go on paying off your debts not advisors!

What’s right for you will depend on your personal circumstances.


YouDrive thinks....

Ongoing debt is terrible – it weighs you down and affects everything – your family life, how you spend your time, and how you feel.  YouDrive believe that, difficult as it is to address this, you MUST tackle it and fast.  It only gets worse.

Whether you tackle it by yourself (or with your partner or friends), or look for expert help is up to you.  It probably depends on how confident you are looking through the options.  We think this is where it probably helps to talk to someone who knows this area.

You can either go back to DebtDrive by clicking here or on the first button below, look for further information by following the links at the bottom of the page, or look at another Drive.

People who looked at DebtDrive also looked at BudgetDrive and MindDrive.

You’ve seen more detail on the different points of view, and also what YouDrive’s view is.  You can go back to DebtDrive by clicking the button here.

More information

If you want to do a full financial health check using the Money Advice Service tool

Use the Money Advice Service budget planner to plan your budget

StepChange the leading debt charity have a section on budgeting – why it’s important, how to make an income and expenditure statement if you need one and how to manage your budget.

If you need to see what universal credit you might get, go to the MAS Universal Credit Money Manager

If you want to see how much you could save – go to our Money Advice Service calculator

If you want an app to help you budget, see the list of the 8 best personal finance apps of 2018 at Investopedia

There’s a template for budgeting from StepChange, the Debt Charity – in Excel so you can enter your own numbers

There’s a template for budgeting from StepChange, the Debt Charity – in PDF format so you can print and enter your own numbers manually

There’s a template for budgeting from MoneySavingInspiration in Excel

There’s a template in Excel you can use from  MoneySavingExpert for setting up your budget

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments