If you’re falling behind with payments, including day-to-day bills, loans, credit cards and your rent or mortgage, a free debt adviser can help you find the best way to clear your debt. Find out how to make an informed decision that could save you time and money in the future.
A debt adviser will listen and help you make an informed decision
Use our Debt adviser locator tool to find free and confidential debt advice online, over the phone or in-person near to where you live.
A debt adviser will:
- treat everything you say in confidence
- support you without judgement – they’ll never make you feel bad about your situation
- suggest ways of dealing with debts that you might not know about
- check you’ve applied for all the benefits and entitlements available to you.
Three quarters of people who get debt advice feel more in control of their finances afterwards.
What is a Debt Management Plan (DMP)
- A DMP lets you clear your debts at an affordable rate.
- You make one monthly payment to the DMP provider.
- Your DMP provider will help you work out an affordable payment and talk to your creditors.
- Might be possible if you have non-priority debts, such as credit or store cards, overdrafts and personal loans.
Find out more in our guide What is a Debt Management Plan?
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Debt Relief Order (DRO)
- A DRO is possible if you’re on a low income with very few assets.
- It freezes debt for a year then writes it off completely if your circumstances haven’t changed.
Find out more in our guide What is a Debt Relief Order?
Individual Voluntary Arrangement (IVA)
- An IVA allows you to pay back what you can afford.
- It lasts a set amount of time (usually five or six years).
- Anything you haven’t paid off by the end may be written off.
- It's a legally binding agreement – this means when you’ve signed it, there are likely to be harsh penalties for cancelling it.
Find out more in our guide What is an Individual Voluntary Arrangement (IVA)?
Bankruptcy
- Bankruptcy is a legal process that can offer relief if you’re unable to pay your debts.
- In some cases, you might be able to write off some – or all – of your debts that are included in the bankruptcy order.
- Not all debts can be included. For example social fund loans, student loans, child maintenance arrears and fraudulent debts are not covered by bankruptcy.
- You might be told to use your assets to pay off your debts first. You can usually keep some essential assets, but might need to replace them with cheaper alternatives.
Find out more in our guide How to declare yourself bankrupt.
Offer in full or final settlement
Do you have a lump sum that would cover part of your debts? Then you could ask your creditors whether they would accept a part payment and allow you to write the rest off.
Or they might allow you to make monthly payments for an agreed period, after which the balance is written off.
Writing off your debts
- Possible in exceptional circumstances if you have no available income, savings or assets.
- You must be able to show your creditors that your circumstances are unlikely to improve in future – for example, if you’re severely ill.
Talk to a free debt adviser to find out if this solution could be suitable for you.
