Debt solutions
There’s more than one way to deal with debt. Pick one to see what it could do for you, how it works and what to weigh up.
General information, not advice about your situation. The right option depends on your income, what you owe, what you own and where you live.
Time and informal options
No court or formal agreement, so they’re flexible. The people you owe can say no.
Breathing space
A legal pause that gives you time to decide
Token payments
Very small payments while you can’t afford more
Debt Management Plan
One monthly payment shared between the people you owe
Formal options in England, Wales and Northern Ireland
Legal processes that can bind your creditors, with effects that last longer.
Individual Voluntary Arrangement
One affordable monthly payment, usually for five years
Debt Relief Order
For people on a low income with few assets
Bankruptcy
A legal process when you can’t pay back what you owe
Options in Scotland
Scotland has its own debt law, so the options and names differ.
Protected Trust Deed
A Scottish agreement to pay what you can afford
Debt Arrangement Scheme
A Scottish scheme to pay back in full over a longer time
Priority and non-priority debts
Debts aren’t all equal. The difference can decide which to deal with first.
Priority debts
The most serious consequences if you don’t pay, like losing your home or energy supply. They usually come first.
- Rent and mortgage
- Council tax
- Energy and water
- Some tax and benefit debts
- Court fines and child maintenance
Non-priority debts
These can still lead to court action, but usually less immediately. They’re usually dealt with after priority debts.
- Credit cards
- Personal loans and overdrafts
- Buy now, pay later
- Store and catalogue accounts
- Many old phone debts
A debt’s type can depend on your situation. Car finance may be a priority debt if you need the car for work.
Free, impartial advice is available elsewhere
You don’t have to use us. MoneyHelper, StepChange and National Debtline give free, impartial debt advice.
MoneyHelper
Free money and debt advice, backed by the government.
StepChange
A charity that gives free debt advice.
National Debtline
Free debt advice by phone and online.
Want to talk it through?
Answer a few questions and an adviser from one of our partner debt firms can call you. There’s no obligation to go ahead.