Money expert's simple savings budget plan to have £1,000 in account within three months

With 15% of UK adults estimated to be in debt, and energy bills due to skyrocket as winter approaches due to Ofgem’s price cap rise, many are looking to pinch pennies wherever possible. However, many find themselves stuck in the mental and financial spiral of; if you can’t pay off your debts how are you supposed to save to avoid future debts?

Experts at MoneyPlus detailed three steps to tackling your debt head-on. They also shared a simple budget breakdown that, if implemented correctly, could help savers put £1,000 away before the end of the year.

A vast majority of people have the instinct to stick their heads in the sand if they can sense they’re heading into debt they can’t find their way out of. But the experts warned this could be the worst thing to do and encouraged people to tackle their debts head-on as soon as possible.

However, this doesn’t have to mean blindly putting money into random places in the hopes it will all dwindle down to £0. Doing research on how to pay back your debts can be just as vital because debt management plans and the help of finance experts can make the payments more manageable and “likely present the opportunity to uncover solutions you didn’t know existed”.

Alongside this, the experts encouraged people to speak to the institutions and people they owe money to, rather than being intimidated by them. They explained: “For instance, Individual Voluntary Arrangements (IVAs) offer personalised repayment plans tailored to individual financial circumstances. Ensure that any payment plan that you agree to is sustainable for you in the long term, and not just a temporary solution.”

Becoming debt-free can be a lengthy and challenging process, so the experts advised to keep your spirits up and