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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.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.