Debt Kit Step 3 - Review Your Income and Expenditure
Step 3 - Consider ways of reducing your expenditure or increasing your income
Consider what non-essential expenditure you could reduce or cut-out without financial penalty, and ways in which you might increase your income. For example:
- reducing expenditure on social activities, fashion items, phone bills, presents, holidays etc.
- you or your partner may be able to earn extra money
- selling items you no longer need
- if you are disabled or on a low income you may be entitled to benefits - ask for a benefits check at your local CAB
- could any other people in your household who have an income contribute more to the household expenditure?
AVOID BORROWING MORE MONEY TO REPAY YOUR DEBTS.
STOP USING ALL YOUR CREDIT AND STORE CARDS
YOU MUST REDUCE YOUR REGULAR EXPENDITURE SO THAT IT IS BELOW YOUR INCOME
If you can identify any changes you'll make then you'll need to revise the Financial Statement you drew up in Step 2.