UK Debt Help: Your Options When the Numbers Stop Adding Up
If your minimum debt payments are eating your salary, five UK organisations will help you for free. Most people pay private firms for advice these charities give away.
Four formal UK debt solutions compared
| Solution | Debt level | Duration | Cost |
|---|---|---|---|
| Debt Management Plan | Any (best under £30k) | Until paid off | Free via charity |
| Debt Relief Order | Under £50k | 12 months | Free |
| IVA | £15k to £75k | 5 to 6 years | £3k to £5k from contributions |
| Bankruptcy | Any | 12 months | £680 fee |
All four leave a marker on your credit file for six years.
Key takeaways
Free, regulated debt advice in the UK is available from StepChange, Citizens Advice, National Debtline and PayPlan. Never pay a private firm for advice that these charities give for free.
The Breathing Space scheme gives you 60 days of legal protection from creditors (interest, charges and enforcement frozen) while you get advice. It is free and applied for through a debt adviser.
For unmanageable debt, the four main formal solutions are: Debt Management Plan (informal), Debt Relief Order (under £50k debt, low income), Individual Voluntary Arrangement (mid-range debt, regular income), and Bankruptcy (last resort, fast clean break).
There is no shame in any of these options. The system exists because debt is legally allowed to grow faster than wages, and getting out of it sometimes requires using the legal exits the system itself provides.