2) DO YOU HAVE SPARE INCOME?
Once you have paid off all your essential outgoings each month, do you have any spare cash left to pay your debts?
Essential outgoing are (but don’t include money owed to debts):
- Food and household costs;
- Council tax;
- Travel costs;
- Gas and Electricity costs; and
- Other essential costs, including insurances.
(If you are not sure, the budget tool can help you do a household budget).