This is simple. Never get into debt (except for student loans and home loans).

If you do have debts your money management must include a plan to pay them off. We admit, you may borrow to make an investment in your future. But borrowing does not solve a spending problem .

You have to earn more or spend less. E.g. turn down the heating, take a second job, learn to cook. None of these is easy but taking on more debt (or failing to repay your existing debt) just defers a solution and makes it harder.

What you need is help. We strongly suggest you seek it at your local office of Citizen’s Advice.

Credit cards

A carefully managed credit card can allow you to borrow a slice of your monthly spending for one month interest-free. Seems like a free lunch.

But the sting in the tail is you have to manage your balances to avoid being wacked with interest rates of 15%-30% when you fail to clear the balance off monthly. Which means you have to spend time and effort managing your account. And mismanaging your account could lead to impairment of your creditworthiness.

You could use debit cards only, via an app that displays the balance on your account whenever you sign on. However debit cards surrender some protection delivered by Section 25 of the consumer Credit Act.

In summary, manage your cash to maximise the interest you receive on balances, but taking account of the strain on your time and skills and the risk of a credit accident. Interest-bearing credit card debt is the most stupid of all financial arrangements.

Home mortgages

……are different. Include the monthly payments in your spending plans.

Student Loans

….are also different. This is because repayments are flexed against your future salary - one measure of your capacity to repay. So you are not caught in the iron grip of a fixed repayment schedule.

But they are also complicated, and the terms can change every year. Consult the student finance section of gov.uk.