I Can’t Afford My Bills, What Can I Do?

Realising that you do not have enough money to pay all your bills can be frightening.

You may be moving money between accounts, delaying one payment to make another or worrying every time a direct debit is due.

If there simply is not enough money available, this is not a problem you can necessarily solve by becoming better organised.

The important thing is to understand the situation, identify what needs attention first and find out what help may be available.

Start with what you can actually afford

Write down your regular income and essential household costs.

This does not need to be complicated.

Start with things such as:

• rent or mortgage
• council tax
• gas and electricity
• food
• essential travel
• essential household costs
• important financial commitments

Then look at what is left.

If the figures do not add up, knowing that is useful.

It means you can start looking for practical options rather than repeatedly trying to stretch money that simply is not there.

Not every bill has the same consequences

When several organisations are asking for money, it can be difficult to know what to pay first.

The largest debt is not necessarily the one that needs dealing with first.

Some unpaid bills can have particularly serious consequences, including problems involving your home, essential services or certain legal liabilities.

This is why understanding priority and non-priority debts can be important.

If you are already behind with several payments, free debt advice can help you understand which commitments need the most urgent attention.

Don’t automatically pay whoever is contacting you most

Repeated calls, letters or messages can make one particular bill feel like the most urgent problem.

But the organisation making the most contact is not necessarily the one you should prioritise.

Before making payments you cannot afford, try to understand the overall position.

If necessary, get independent debt advice before deciding how the money you have available should be used.

Contact organisations if you are struggling

If you know you cannot make a payment, consider contacting the organisation rather than simply allowing the payment to fail without explanation.

Tell them that you are experiencing financial difficulty and ask what support or options may be available.

Depending on the type of bill and your circumstances, an organisation may be able to discuss things such as payment arrangements or other forms of support.

Before making contact, write down:

• your account or reference number
• what you currently owe
• what you can realistically afford
• why your circumstances have changed
• any questions you want answered

Keep a note of conversations and copies of important correspondence.

Check whether you are missing financial support

If your household finances are under pressure, check whether there is additional support you may be entitled to.

This can be particularly important following a change such as:

• losing your job
• reduced working hours
• illness
• disability
• becoming a carer
• separation
• retirement
• a change in household circumstances

Depending on your situation, there may be benefits or help with housing, council tax or other household costs.

It is worth checking rather than assuming you will not qualify.

Look at individual household costs

Once you understand the overall problem, look at whether support is available for particular bills.

For example, there may be different routes to explore if you are struggling with:

Rent

Council tax

Energy costs

Food and essential household costs

Mortgage payments

Later guides in this section explain these areas separately because the help available and the consequences of falling behind can be different.

Be careful about borrowing to cover everyday bills

Using credit can sometimes make a difficult month feel more manageable.

But repeatedly using credit cards, overdrafts or loans to pay ordinary household expenses can be a warning sign that there is an underlying shortfall.

Before taking on additional borrowing, consider whether it solves the problem or simply moves it into a future month.

If existing borrowing is already becoming difficult to manage, getting free debt advice may be more useful than taking out more credit.

Don’t agree to a debt solution you don’t understand

If you search online for help with debt, you may come across companies offering different debt solutions.

Some may be appropriate in certain circumstances, but there is no single solution that is right for everybody.

Different options can affect your finances in different ways.

Before agreeing to a formal debt solution, make sure you understand:

• what it involves
• how long it may last
• what you will pay
• whether there are fees
• how it may affect your credit record
• what happens if your circumstances change
• whether there are other options

Free independent debt advice can help you explore the choices available before making an important decision.

If you’ve already missed payments

Do not assume that because you have fallen behind, it is too late to ask for help.

Start by finding out:

What have I missed?

How much do I owe?

Has anything reached an urgent stage?

What correspondence have I received?

Then seek appropriate advice if you are unsure what to deal with first.

Ignoring the situation usually reduces the number of options available rather than increasing them.

Money problems can affect how you think

When you are worried about paying for basic things, concentrating on forms, figures and telephone calls can become much harder.

You may feel embarrassed, anxious or overwhelmed.

Try to separate the two problems.

There is the financial situation.

And there is how the financial situation is making you feel.

Both may need attention.

You can seek practical financial support while also taking steps to look after your mental wellbeing.

One step is enough to start

If everything feels overwhelming, choose one practical action.

That might be:

Check what money is available.

Open the latest bill.

Complete a benefits check.

Contact one organisation.

Speak to a free debt adviser.

You do not need to solve every bill today.

The aim is to move from:

“I can’t afford everything and I don’t know what to do.”

towards:

“I understand the problem and I know what I need to look at next.”

7.3: I’m Scared to Look at My Finances, Where Do I Start?

7.5: My Income Has Suddenly Fallen, What Should I Look At First?

7.8: Where Can I Get Free Help With Money Problems?

7.9: What Benefits Might I Be Entitled To?

7.31: What Help Can I Get With My Rent?

7.32: What Help Can I Get With Council Tax?

7.35: What Help Is Available With Energy Bills?

7.36: What Help Is Available With Food and Essential Costs?

7.39: I’m Struggling With Debt, Where Do I Start?

7.40: What Are Priority and Non-Priority Debts?

Important information

This guide provides general information and is not intended to provide financial, debt, legal or other professional advice. Individual circumstances can be different. You may wish to check current information from official sources and seek advice from an appropriately qualified professional before making important decisions.