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Tenant support | Managing debt and reducing financial stress

Did you know that our fully funded, independent tenant support and wellbeing service through Life & Progress can help you manage your finances?

 

Whether it’s tackling debt, improving budgeting habits, or finding ways to ease financial burdens, small steps can lead to significant changes.

 

Here and Life & Progress’ tips to help you take control of your financial health and move towards a more secure future.

  1. Assess Your Financial Situation

Create a detailed list of all your income, expenses, and debts. Include balances, interest rates, and due dates

Use budgeting tools or apps to get a clear picture of your financial inflow and outflow

By knowing where your money is going, you can identify areas for improvement and prioritize repayment goals.

 

  1. Create a Realistic Budget

Budgeting helps you allocate funds where they matter most, ensuring you live within your means. As a general example, use the 50/30/20 rule:

o 50% for essentials (rent, groceries, utilities)

o 30% for non-essentials (dining out, entertainment, other)

o 20% for savings or paying off debt

Sticking to a budget helps you avoid overspending and build a safety net for unexpected expenses.

 

  1. Prioritise Debt Repayment

Reducing debt should be a top priority because high-interest payments can drain your finances and limit your freedom.

Focus on either the snowball method or the avalanche method:

o Snowball Method: Pay off the smallest debts first to build momentum and confidence

o Avalanche Method: Pay off debts with the highest interest rates first to save more money over time

 

Make consistent, above-minimum payments whenever possible

Avoid taking on new debt unless absolutely necessary and focus on clearing existing balances.

 

  1. Build an Emergency Fund

An emergency fund provides financial security and peace of mind in case of unexpected expenses, such as medical bills or car repairs.

Start small and aim to save at least 3-6 months’ worth of essential expenses.

Automate your savings by setting up a recurring transfer to a dedicated account

Having a financial cushion reduces the need to rely on credit cards or loans when life becomes challenging.

 

  1. Cut Unnecessary Expenses

Track your spending for a month and identify patterns or habits that can be adjusted. Cancel unused subscriptions, cook meals at home, and shop smarter

Set spending limits on categories like entertainment or dining out

Small savings add up over time, and reallocating these funds can make a big difference.

 

  1. Negotiate Bills and Debts

You might be surprised how much you can save by negotiating better rates or terms on existing expenses.

Contact service providers (utilities, phone, insurance) to ask for discounts or better plans.

If you’re struggling with debt, speak to creditors about potential repayment plans, reduced interest rates, or debt consolidation options.

Many organisations are willing to work with you - but only if you ask.

 

  1. Avoid Impulse Spending

Follow the “24-hour rule” - wait a day before making non-essential purchases to see if you still feel the need to buy

Create a list before shopping and stick to it

 

  1. Increase Your Income

If reducing expenses isn’t enough, finding ways to increase your income can accelerate debt repayment and improve financial stability.

Consider freelancing, part-time work, or selling unused items for extra cash

Explore professional development opportunities that could lead to raises or promotions

Every additional pound earned can be directed toward your financial goals.

 

  1. Seek Financial Guidance

Reach out to financial advisors or non-profit debt counselling services for guidance tailored to your situation.

Avoid predatory lenders or services that promise unrealistic solutions.

A structured plan from an expert can provide clarity and actionable steps for moving forward.

 

  1. Focus on Your Long-Term Goals

Visualise financial freedom, whether it’s becoming debt-free, buying a home, or retiring comfortably

Break larger goals into smaller, achievable milestones to maintain momentum

By focusing on the bigger picture, you’ll find it easier to stay committed to your financial journey.

 

By taking proactive steps - like building a budget, reducing unnecessary expenses, and tackling debt - you can regain control of your finances and reduce stress.

 

Our tenant support and wellbeing service is a free and confidential lifeline, provided by independent provider Life & Progress.

The service can offer support on a variety of topics, including debt, stress, anxiety, bereavement, family matters, workplace issues and legal matters.

Please don’t struggle alone.

Freephone: 0330 094 8845

Username: progressgroup

Password: tenant

Website: www.tenantcare.co.uk

About the author

Progress Housing Group