Tackling bill debt

Bill debt is incredibly common. Household bill debt is one of the most common forms of problem debt in the UK, according to market research company Savanta on behalf of poverty charity Joseph Rowntree Foundation, they found through research that almost 40% of low-income families are in arrears on at least 1 household bill or debt repayment, equivalent to 4.5 million households across the UK.

Not only that, a recent survey conducted by YouGov on behalf of StepChange Debt charity, also found that one in ten (9%) UK adults have used a credit card to pay for essential household bills in the past three months, equivalent to around 5 million people. This turns into credit card debt, but shows that people are struggling with essential bills.

What these figures show is that it is really normally to be in bill debt, whether that be one or multiple, and people are struggling to pay it off. It's not something that people should be ashamed of and there is lots of help and advice out that to help. I have personally been in debt myself, it wasn't bill debt but I understand how it feels and want people to know that it is possible to get out of that hole.

Absolutely. It can feel really overwhelming if you have multiple bills that have accrued debt, so prioritising and working through them one by one can be really important.

The consequences of not paying off some debts before others can be more serious. So, if you're struggling to make your repayments on time, you need to look at all your debts and split them into: debt emergencies, priority debts and non-priority debts.

A debt emergency includes debt that are urgent to pay, this could be the case if there is a court action, a bailiff action, disconnection, or eviction for mortgage or rent arrears.

You can get free and independent debt advice from various organisations such as Money Helper and National Debtline to help you with any debt emergencies. Some debt advisers may be able to talk to the court, bailiff or creditor on your behalf. If you want someone to do this for you, check if they'll be able to, and they can also advise you on what to do next.

After dealing with any debt emergencies, if you have any, priority debts are the next to tackle. These are those that carry the most serious consequences if you don't pay them.

These don't have to be the largest or debts with the most expensive interest rates, but if you don't pay them it could lead to serious problems. Priority debts can include: court fines, council tax or rates, TV licence, child maintenance or gas and electricity bills.

Then there are none priority debts, which includes things like overdrafts, water bills, bank or building society loans.

The consequences of not paying non-priority debts are less serious. If you don't pay non-priority debts, your creditor could eventually take you to court or instruct bailiffs to collect money from you, but this happens a lot slower than with priority debts.

There are a lot of small things we can do to help ease the stress and make paying off debt easier. The first is to create a payday routine. Set aside time each payday to review your finances, pay priority bills first, and plan for the weeks ahead. Banking apps often have Salary Sorter tools to help divide up your spending, bills and savings to suit you. Having a regular routine can help you stay on top of spending and avoid unexpected shortfalls.

Try and use micro-payments. Making big lump sum payments towards your debt can feel daunting and even unmanageable. On the other hand, paying off just a couple of pounds more frequently can feel much less scary, and it all adds up.

Next, make sure you keep track of your money. Check your bank account regularly and update your monthly budget to reflect any changes in income or expenses.

Review your household bills and subscriptions. Small savings can add up over time. Check for subscriptions you no longer use, compare deals when contracts end, and see if switching to Direct Debit could reduce the cost of some bills.

Build a rainy-day fund little by little: If saving feels difficult, start small and only do it if you can. Many banking apps allow you to round up everyday purchases and move the spare change into a savings account, helping you build an emergency cushion over time without noticing a big impact on your budget.

Seasons come and go, and winter is unfortunately coming and is a tough season financially for a lot of people. We talk about the costs of things a lot and people have been navigating these situations for a long time and understand that it can be overwhelming when seasons change.

My biggest tip is to plan ahead. Do you have any repairs that might need to happen over winter? Will you change how you feed your family now it's getting colder? If you celebrate Christmas, are you thinking about those costs? Even if it is tight, make a bit of a plan for what's coming and what to expect, put some money aside if you can and see if there's anything from summer that you can cut out, don't let things creep up and surprise you.

It may also be worth seeing if you can make some extra money, can you do an autumn clear out and sell a few things on online or at a car boot sale. Also try and opt second hand for yourself to save some extra money. Think ahead of things coming up, cut costs, make more money, time to have an autumn clean, reselling clothes online or car boots, opting for second hand yourself.

Finally, if you are struggling, remember to check what support you're entitled to. You can do this by using an independent online benefits calculator via the GOV.UK Benefits Calculators page.