Step 1 Know what you’ve really got 1 Why is this step important? We know that when you are struggling with debt, the thought of writing down your income and outgoings might feel like the last thing you want to do. But doing a budget might be easier than you think. In our recent survey more than 75% of people found it easier than they expected to fill in their budget. Filling in your budget is the starting point for dealing with your debts. You won't be able to choose a solution to deal with your debts without a budget. All advice agencies will expect you to do a budget before they can discuss your options. Your creditors will also ask for one. It shows you:  what money you have coming in (your income);  what money you are spending (your outgoings);  whether you have enough money to pay your essential bills; and  what is available, if anything, to pay your debts. This information helps you to find the best solution to deal with your debts. It also allows you to:  plan for future spending; and  protect yourself against the stress that unexpected bills or increased costs can cause. Arjun, 62, from Newport said: “My advice would be to take a nice deep slow breath. It might seem daunting, but facing it head on will improve your life in the long run.” Page 13