Skip to main content
Back to Cost of Living & Debt

First steps for a household that used to cope

A benefits check, an energy check, a bills renegotiation and — if needed — a call to free debt help. In that order.

Cost of Living & Debt3 min readReviewed July 2026

The cost-of-living crisis has pushed many households from just-about-managing into monthly deficits. If that's you, start with a benefits check — millions of pounds of Universal Credit, Pension Credit and Council Tax Reduction go unclaimed each year.

Renegotiate every essential you can: broadband and mobile deals (especially at contract end), motor and home insurance (never auto-renew), and any subscriptions that have quietly been auto-renewing.

If the monthly numbers still don't work, that's a sign the problem is structural rather than budgeting. Free debt help can look at whether a formal solution (DMP, IVA, DRO) would give you breathing space.

Guidance, not personalised helpThis article is written to inform. It isn't personalised debt or legal advice — a Debt Compass adviser will discuss your options and eligibility with you before you choose a route.