Step 3 - Set a Budget (and stick to it)

Work out how much you need to spend on essentials and don't assume you can blow everything else - always keep something aside for emergencies. It can help to set up direct debits for regular bills and you may get a discount, too.

It's crucial to pay what you owe on time. If you don't, your credit report will be affected. You may want to consider taking up a part-time job to help you cope with increased expenses.