When you owe money and have nothing set aside, the next step depends on what your budget can support. Work through essential bills, debt costs and emergency cash, with practical examples to help you decide what needs attention first.

Highest-interest-first sounds simple until you need to decide exactly what to pay. Follow a complete avalanche example, see how payments move between debts, and compare its interest cost and milestones with a snowball using the same budget.

Clearing a small debt can give you an early milestone, but what happens to the payment next? Follow a complete snowball example, including the first cleared balance, the cost trade-off and what changes when your available income falls.

Start with what your budget can actually cover. A practical guide to essential bills, debt costs, emergency savings and the next decision that fits your situation.

A debt plan needs to survive an ordinary difficult month. Work through affordable payments, a lower-income adjustment and a statement check that explains why £630 paid does not mean £630 less debt.