Don’t delay your budgeting: The danger of ‘winging it’ through your debt problems
By Mr Bankruptcy
16th September 2025
When you’re in debt, the idea of creating a budget can feel overwhelming – even unhelpful. People with debt that’s becoming unmanageable believe they can ‘wing it’ by cutting back here and there, making occasional extra payments, and hoping for the best.
But this approach rarely works. Without tracking income, expenses, and repayment goals, you risk overspending, missing payments, or failing to prioritize high-interest debts.Debt tends to linger, grow, or spiral out of control, and the longer you leave it, the more difficult it becomes, and the more your debt problem can grow.
Why budget?
Budgeting isn’t just about tracking the numbers; it’s about taking control. It gives you some transparency in your financial habits, helps you prioritize repayments, and empowers you to make informed decisions. Without a budget, it’s like trying to fix a leak in the dark.
Avoiding a budget often comes from fear: fear of facing up to the reality of your financial situation, or fear of failure. The truth is, budgeting is one of the most powerful tools you have. It doesn’t restrict you, it’s liberating. It shows you what’s possible and helps you to see the path to becoming debt-free.
But it’s no good just going through the motions. Here are five practical steps to build a budget that works for you:
1. Know Your Numbers. Start by gathering all your financial information together, including:
- Your monthly net income (and be realistic, not over-optimistic)
- Your regular, fixed expenses such as rent/mortgage, utilities, insurance etc
- More variable expenses like groceries, transport and entertainment
- What are the minimum debt payments you need to make (credit cards, loans)
- Your total outstanding debt
This step is all about clarity. You can’t manage what you don’t measure. Use a spreadsheet, budgeting app, or even pen and paper — whatever works for you.
2. Prioritize Your Debts. List all your debts, including balances, interest rates, and minimum payments. Then choose a repayment strategy:
- The snowball method: pay off the smallest debt first for quick wins.
- The avalanche method: Focus on the highest-interest debt to save money long-term.
I normally recommend the avalanche method because I believe in tackling the biggest elephant in the room, but both are positive actions.
Whichever method you choose, make sure your budget reflects your priorities; allocate any extra money toward your target debt, while you keep up minimum payments on the rest.
3. Cut Non-Essential Spending. Review your variable expenses and identify areas to cut back on. This doesn’t mean living a miserable life, it means focusing on what’s most important to you; for example:
- Can you cook more meals at home or make sandwiches to take to work?
- Do you still use all those subscriptions?
- Can you put a pause on some discretionary spending while you cut down the biggest debt?
Every pound you save is a pound towards debt repayment. Which reduces your interest costs; small changes add up quickly.
4. Automate and track. Set up automatic payments for bills and debts to avoid missed deadlines that incur additional late fees. And use budgeting tools or apps to track your spending in real time. This helps you stay accountable and spot problem areas early.
5. Review and adjust. Your budget isn’t static; life changes and so should your plan. At the end of each month, review your spending, debt progress, and any unexpected expenses. Adjust your budget to stay on track – and enjoy your successes. This habit builds financial resilience, helping you to respond to challenges without derailing your goals.
Take back control
Budgeting isn’t a punishment; it’s a plan. It makes the difference between hoping your debt goes away and actively making it happen.
Winging it might feel easier in the short term, but it rarely leads to lasting results. Every step you take toward budgeting is a step away from debt and toward financial freedom.
James Rosa Associates
At some stage, you may need to speak with a specialist debt advisor who can assess your unique situation and guide you towards the most suitable solutions for your circumstances.
James Rosa Associates is a trusted firm of debt advisors and adjustors, known for our compassionate, approachable, and non-judgemental service. We provide comprehensive advice and tailored support to individuals, business owners, and company directors who want to deal with overwhelming debt and seek a way forward. We also assist clients involved in civil or commercial disputes.
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Could you be eligible for a free consultation?
We understand how deeply unmanageable debt can impact on every aspect of your life, and we are committed to helping as many people as possible, which is why we offer a limited number of free consultations.
If you’re ready to take control of your financial situation, contact James Rosa Associates; you may qualify for free support.
Call 0845 680 7217 or email enquiries@jamesrosa.co.uk today and take your first step toward a brighter financial future.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.