Budgeting and how to stay out of debt

Watch our short film, have a pen and paper handy, then check out the following simple, real‑life tips to help you stay in control of your money and avoid debt.

Watch our short film, have a pen and paper handy, then check out the following simple, real‑life tips to help you stay in control of your money and avoid debt.

1. Ask yourself: “Do I actually need this?”

It’s super easy to get tempted by things online or in shops. Before you buy, pause and ask yourself: “Do I really need this, or do I just want it right now?” That little moment of honesty can save you a lot of stress later. Perhaps delay the decision to buy something for 24 hours to give you time to help answer that question.

2. Make a budget (your future self will thank you)

Budgeting is all about taking control of your money, and knowing what money comes in and what goes out can make life easier. It can help us avoid overspending, and perhaps save toward your goals. Creating a budget supports us to feel more confident about money.

Download our Monthly budget planner from this page to get started.

3. Get to know your credit score

Your credit score, also know as a credit rating, affects loads of things — from getting a phone contract to buying a car.

You can check your score for free with sites such as Experian. 

4. Save or borrow? Think long‑term

Saving means waiting longer, until you have the money, to buy something, but could avoid future stress. Borrowing gives you the thing now, but you’ll have to pay it back—often with extra costs.

Borrowing isn’t “bad”, but if you’re not careful, it can snowball so its worth thinking of the long term when making buying decisions. Check our Ways to save saving tips tool which could help you reach your goals quicker.

5. Always check the interest rate (APR)

If you borrow money or use credit, you’ll usually pay interest. APR tells you a percentage of how much extra you’ll be charged. The lower the rate = the less interest you will pay.

Before borrowing, ask: “Can I realistically afford the extra cost on top of what I’m borrowing?”

6. Switching your credit card can save you money

If you already have credit card debt, switching to a card with a lower interest rate — or even a 0% rate for a while — can save you money.
Just remember: the low rate won’t last forever, you will be charged interest at some point. Try to pay off as much as you can while it’s low.

7. Build a mini emergency fund

Putting aside even £5 a week adds up to £260 a year. Pop it into a savings account which pays interest and you could grow it even more.

8. Don’t ignore money problems

If things start to feel overwhelming, talk to someone. Free support is available from places like the National Debt line or the Citizens Advice Bureau.
You’ll get confidential advice from trained experts who genuinely want to help.

The film finance glossary mentioned in the film can be explored in our Know your money terms tool to help you understand money language and feel more financially confident.