Can’t keep up with bills but not in debt yet? Here’s what you can do
For many households, it starts gradually. A few bills creeping up each month. Groceries costing more than expected. Energy direct debits taking a bigger bite out of your account. You might be struggling to stay afloat financially, even though you’re not technically in debt yet.
This is a difficult place to be. You’re not in arrears, but the margin for error feels tiny. One unexpected expense – like a car repair, dental bill, or appliance breakdown – could tip things over. The good news is there are steps you can take now to regain some balance before things become unmanageable.
This guide explains the warning signs, the practical steps you can take to protect yourself, and where to find support if you’re worried about money.
Spotting the signs of financial strain
Even if you’re not technically in debt, that doesn’t mean you’re not under financial pressure. Some signs that your budget might already be stretched include:
- Relying on your overdraft each month
- Paying for essentials with credit cards and not clearing the balance
- Putting off household repairs or car maintenance because of cost
- Feeling anxious when new bills arrive
- Avoiding opening letters or checking bank statements
- Skipping social events because you can’t justify the cost
- Delaying important purchases like school uniforms or household essentials.
If any of these sound familiar, it’s worth acting now. Early action makes it easier to get back on track, and avoids sliding into problem debt later.
Understanding priority and non-priority bills
When money is tight, it’s important to know which bills to pay first. Missing some has more serious consequences than others. Priority bills include:
- Rent or mortgage
- Council tax
- Gas and electricity bills
- Court fines
- TV licence.
These should always come first, because missing them could result in eviction, bailiff action, fines, or disconnection. Other commitments, like credit cards or store cards, are still important but usually don’t carry the same immediate risks.
To help you work out which bills to prioritise, you can use our bill prioritiser tool. Simply select the debts you’re worried about and it will tell you which to focus on first.
Making a realistic budget
A clear budget gives you a bird’s-eye view of your money. Start by listing all your income, then all your essential outgoings. Essentials include housing, council tax, utilities, food, and travel to work. Anything left over after this is what you can use for other bills or savings.
Be honest about what’s going out – even small things like subscriptions or takeaway coffees add up. If you find more is leaving your account than coming in, it’s a sign you need to adjust now.
Cutting costs without cutting essentials
Not every cost can be cut, but some can be reduced with a bit of planning:
- Energy bills – check if you qualify for support schemes or energy efficiency grants
- Groceries – plan meals, make shopping lists, and avoid waste
- Subscriptions – cancel or pause services you don’t use often
- Insurance and contracts – shop around at renewal to get better deals.
Building a small safety net
Even a small emergency fund can make a difference. Putting aside just a few pounds each week can help cover unexpected costs without turning to credit. This is especially important if your bills are creeping up and you don’t want to rely on borrowing to plug the gap.
If saving feels impossible right now, focus instead on stabilising your budget. Once you’ve found a balance, even tiny contributions to a savings pot can help.
When credit use becomes a warning sign
Credit cards, overdrafts, or buy now, pay later services can be useful for smoothing out cash flow. But if you’re using them every month just to cover basics, it’s a sign your finances are under strain.
If balances are creeping up, make a plan to stop them growing further. Paying at least more than the minimum where possible will help reduce long-term costs.
If you find yourself juggling payments or considering new borrowing to cover old, it may be time to seek advice. Remember, credit is meant to be a short-term tool – if it’s becoming your safety net, your budget needs attention.
Boosting your income
When cutting costs isn’t enough, the other side of the equation is finding ways to bring in more income. Consider:
- Checking if you’re entitled to benefits or tax credits
- Looking into one-off grants or council support schemes
- Exploring overtime or side work, if possible
- Selling unused items online for quick cash boosts.
Even small boosts can help give you breathing space.
Keeping on top of changes
Finances aren’t static. Your income and expenses may shift throughout the year. Review your budget regularly, especially when bills increase or if your circumstances change. By keeping a close eye, you’ll spot problems earlier.
Marking a monthly date in your calendar to review your money can be a good habit. This way, you’ll notice changes sooner and can adjust before small problems snowball.
Reaching out before things get worse
If you feel close to falling behind, speaking to a debt adviser can make a huge difference. You don’t need to wait until you’ve missed payments. Getting advice early can help you:
- Prioritise the right bills
- Negotiate affordable payment plans with creditors
- Explore solutions that reduce pressure before it escalates.
You can get free debt advice from MoneyHelper. Or you can contact MoneyPlus to talk through your situation in confidence. We offer non-judgmental advice to help you create a plan that works for your situation.
