Even when you have tried to increase your income and make your money go further, you may still find that you don't have enough to make ends meet. Now is the time to look at your outgoings and assets.

Look at your expenses on List 2. Are there any non-essential items that you could reduce or cut out? Be realistic and don't cut down on essentials like food and heating.

Now look at your assets in List 3. Do you have any items you are willing to sell such as antiques or other valuables? Don't rush into selling anything without making sure you will get a reasonable price and beware of selling to doorstep callers. Don't sell essential items such as furniture. If in doubt, get independent advice before you do anything.

Priority bills

Some bills are 'priority' bills and it is important to pay these first. Priority bills include mortgage, second mortgage or secured loan, rent, council tax, water, gas and electricity, unpaid fines and hire purchase. If you are reliant on the telephone this should also be a priority bill.

The reason why it is important to pay priority bills first is that the action creditors (the people you owe money to) can legally take can have serious consequences for you. For example, if you do not pay your mortgage or secured loan your home could be repossessed; if you don't pay your gas or electricity bills the energy supply to your home could be cut off; or if you fail to pay your council tax you could go to prison. But don't panic. Provided you act quickly, and either pay off all the debt or arrange with the creditor to pay it off in instalments, you should be able to stop these things happening.

The important thing is not to ignore a bill you can't pay - get in touch with the organisation you owe money to if you are having problems. If you act quickly you should be able to sort things out. These creditors can only take action against you after giving you warning and, in many cases, after long civil court proceedings.

If you aren't sure about which bills should be top priority, or if you are having difficulties in finding enough money to pay priority bills, get further advice from one of the agencies listed in Useful contacts. Bear in mind that the creditors who shout the loudest and bombard you with letters and phone calls may not be the most important ones so don't pay them before the priority debts. They are not allowed to cause you alarm or distress. If you think you are being harassed by a creditor, contact your local council, the police, or an advice agency.

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Negotiate with creditors

If you have enough money coming in to pay your important bills, together with household expenditure such as food and laundry, but do not have enough money to pay the creditors shown on List 4, then it should be possible for you to make arrangements with these creditors to pay reduced amounts.

Don't agree to a repayment plan unless you are sure that you can meet the payments. It is better to come to an arrangement to pay back small amounts which you know you can afford than agree to unrealistic repayments which you won't be able to keep up. You can put these amounts in the 'payment offer' column of List 4.

See the National Debtline self-help pack 'Dealing with your debts' for more information about how to make these arrangements.

Basic rules

If you find you have not got enough money to make ends meet, remember these basic rules:

• Don't borrow more money to pay off your debts. Get advice first from your local Citizens Advice Bureau, the National Debtline, the Consumer Credit Couselling Service or a local advice agency
  
• Don't ignore the problem: it won't go away and the longer you leave it, the worse it will get
  
• Do make sure you pay your priority bills and make arrangements to bring them up to date
  
• Do write everything down using the Personal Budget Lists
  
• Do get advice from one of the agencies listed at the end of the leaflet if you are worried or not sure what to do