What to Do When You’re in Debt
- Tori Lynn Crowther
- Apr 15, 2025
- 5 min read
What to Do When You’re in Debt
A Practical Guide to Regaining Control
Debt is not a personal failure. It is usually the result of cash-flow pressure, rising costs, poor information, or having to survive when there was no other option. What matters is what you do next.
This guide is about stabilising your situation, stopping the damage from spreading, and creating a realistic plan to move forward — without panic, shame, or false optimism.
Step 1: Stop the Bleeding First
Before you try to “fix” debt, you must stop it getting worse.
Commit to One Rule Immediately
Do not take on any new debt unless it is a genuine emergency.
This means:
No credit cards for everyday spending
No Klarna, PayPal Credit, or “buy now pay later”
No borrowing to maintain a lifestyle you can’t currently afford
If debt continues to grow while you’re trying to manage it, progress is impossible.
Step 2: Get Absolute Clarity on What You Owe
Vague debt is scarier than real debt. Numbers reduce fear.
Write down:
Each debt separately
Total balance
Interest rate (APR)
Minimum payment
Payment due date
Include:
Credit cards
Overdrafts
Loans
HMRC tax debt
Personal borrowing
Do not round figures. Accuracy matters.
Step 3: Pay Off the Most Expensive Debt First
When you are in debt, saving comes later.
The priority is to eliminate the debt that is costing you the most in interest.
Why This Matters
High-interest debt grows faster than savings ever will
Paying interest is money leaving your life permanently
Clearing expensive debt gives you breathing space
This approach is known as the avalanche method:
Pay minimums on all debts
Put every extra pound towards the highest interest debt
Once cleared, roll that payment onto the next most expensive
You are not “bad with money” for not saving yet. You are being strategic.
Step 4: Increase Income in the Short Term
Debt rarely improves through budgeting alone. It improves faster when income temporarily increases.
This is not about burning out long-term — it’s about a defined short-term push
.
Examples:
Taking on extra work temporarily
Extending hours for a set period
Offering short-term premium services
Selling unused items
Taking one-off freelance or casual work
The key rule: Extra income goes directly to debt, not lifestyle upgrades.
This phase is temporary. The relief it creates is long-lasting.
Step 5: Strip Spending Back to Essentials Only
While in debt, your spending priorities change.
Focus on:
Housing
Food
Utilities
Transport
Insurance
Debt repayments
Pause or cancel:
Subscriptions
Non-essential shopping
“Treats to cope” spending
Convenience spending that adds up
This is not punishment. It is a reset.
Step 6: Do Not Save Yet — But Plan to
When debt exists, especially high-interest debt, savings come after.
The exception:
A very small buffer to stop immediate borrowing (e.g. £500–£1,000 if possible)
Once expensive debt is cleared:
Redirect payments into savings automatically
Build an emergency fund so debt doesn’t return
Step 7: Decide What Is a Real Emergency
Before spending or borrowing, ask yourself these five questions:
Does this threaten my health, safety, or ability to work?
Will not paying for this make my situation significantly worse?
Is this unavoidable right now, not just uncomfortable?
Is there a cheaper or temporary alternative?
Would future-me agree this was necessary, not emotional?
If the answer is “no” to most of these, it is not an emergency.
Discomfort is not danger. Inconvenience is not crisis.
Step 8: Speak to Creditors Early, Not Late
Ignoring debt makes it more expensive.
Most creditors will:
Accept reduced payments
Freeze interest temporarily
Agree to payment plans
Especially:
HMRC
Credit card companies
Utility providers
Silence removes options. Communication creates them.
Step 9: Protect Your Mental Health
Debt is emotionally exhausting.
Important reminders:
You are not your bank balance
Progress is not instant
Consistency beats intensity
Track progress visually. Celebrate debts cleared, not just totals remaining.
Step 10: Learn From the Situation (Without Beating Yourself Up)
Once things stabilise:
Identify what caused the debt
Build buffers where possible
Create systems to prevent relapse
The goal isn’t perfection. It’s resilience.
Final Reality Check
Debt does not mean you’ve failed. Staying stuck in it when you could act is the only real risk.
Clear plans beat wishful thinking. Temporary sacrifice beats long-term stress.
You can move from survival to stability — one decision at a time.
A Note on Business, Money & Professionalism
This guide is written on one clear assumption: you are running a business, not a hobby.
Pet care may be driven by passion, but it is also your income, your responsibility, and your future. Loving the work does not remove the need for proper pricing, planning, and financial structure. In fact, it makes those things even more important.
You are allowed to:
Charge enough to make your business sustainable and secure
Put systems in place that protect your income automatically
Set clear financial and professional boundaries with clients
Expect to be paid on time and treated with respect
Take money seriously without feeling greedy or uncomfortable
Build a business that supports you, not one that drains you
Financial stability is not selfish. It is what allows you to show up consistently, make good decisions, and continue doing this work without burnout.
Professional success starts with self-respect. And pet care businesses built on self-respect don’t just survive — they thrive for the long term.
About Tori Lynn C. & The Dog House
Welcome to The Dog House — my cosy corner of the TLC Canine Crusaders Business Hub. I’m Tori Lynn C., the founder of TLC Dog Walking Limited, mentor to professional dog walkers, and lifelong advocate for dogs and the people who care for them. With over 17 years of hands-on experience in the industry, my mission is to guide you through the realities of running a successful, sustainable dog walking business — from client care and safety to wellbeing, confidence, and professional growth.
The Dog House is where I share the honest, behind-the-scenes conversations we all need: the tricky moments, the funny bits, the business lessons, and the mindset work that keeps us thriving rather than merely surviving. Whether you're just starting out or scaling up, you’ll always find support, guidance, and a friendly nudge forward here.
You’re never alone in this journey — you’re part of a community of canine crusaders.
Legal Disclaimer
The information provided on this website is for general information and educational purposes only. It is intended to support pet care professionals in understanding common legal considerations when operating a dog walking or pet care business in the UK.
This content does not constitute legal advice and should not be relied upon as a substitute for advice from a qualified solicitor or legal professional. Laws, regulations and local authority requirements may change over time and can vary depending on location and individual circumstances.
While every effort has been made to ensure the information is accurate and up to date at the time of publication, no guarantees are made regarding completeness or applicability to your specific situation.
By using this website, you acknowledge that:
✓ You are responsible for ensuring your own business complies with all relevant UK laws and local authority rules
✓ You should seek professional legal advice before drafting, using or relying on any contract or legal document
✓ The website owner accepts no liability for loss, damage or legal issues arising from the use of this information
If you are unsure about any legal obligations, contractual terms or liabilities, it is strongly recommended that you consult a solicitor experienced in small business or consumer law.
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