How to look after your debt

Work out a budget

The first thing to do is to work out how much money you have coming in and out each month (also known as a budget). 

To do this, you should make a note of all the monthly payments you make. Think about your mortgage or rent and any credit card and loan payments. Also, note down any savings, investments and insurance you may have. Plus, of course, there’s always council tax, gym fees, subscriptions, travel costs, and internet and TV packages.

To make this a little easier, you might like to visit MoneyHelper’s Budget Planner.

Be realistic with your budget, so you don’t set one that will be hard to stick to. And as you put it together, please keep these things in mind:

  • Focus on your priority payments first – e.g. rent and mortgage payments, council tax and accounts you’re behind with and owe interest and fees on.
  • Look at the non-essential things you spend money on and cut back on them until you’re back on track.
  • Try to pay off debt with the highest interest rates first.
  • And if more money goes out than comes in, get some free independent help and advice or speak to your creditors directly.

Make a few small changes…

Just a few small changes can have a really big impact. Take a look at our tips for credit cards and loans below.

…to stay on track with your credit card

You should always try and make at least the minimum payment by the due date you’ll find on your monthly statement. There are many ways for you to pay. Check out our range of payment options.

If you can, try to pay more than the minimum amount. 

If you only pay the minimum each month, it’ll cost you more and take longer to repay your balance. 

Think about setting up a Direct Debit. 

We’ll make them for you on the day that you choose each month. You just need to set them and you’ll never forget them.

Keep track of your account balance. 

Charges could take you over your credit limit, even if you don’t buy anything. So try and make sure there’s some available credit.

Use Online Card Services or the app. 

Check your statements, keep track of your payments and stay on top of your money safely and securely.

Log in      Register

…to stay on track with your loan

Think about changing your Direct Debit date. 

Try and change it to the day when you have the most money in your account. This will probably be just after you get paid each month.

Keep track of your monthly spending and stay on top of your budget. 

Just to make sure you can pay back what you’ve borrowed.

If you can make extra payments. 

You can make them whenever you like and it may reduce your loan term and the interest you pay. There are no charges for doing this, but keep in mind there’s an early settlement fee (up to 58 days’ interest) if you pay it off early.

Keep track of your annual statements. 

As your monthly repayments are fixed, we will send you a statement every year.  And if you call us to talk about your loan, please have your latest annual statement to hand.

If you’re struggling with your payments

Don’t worry, there are many ways we can help you.

Find out how we can help

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